The dollar remains on the back foot against the pound and the euro after a busy day of US data releases yesterday.
GDP figures revealed that the American economy contracted by 1.5% in the first three months of the year, largely driven by a decline in trade. Imports, particularly non-food and non-automotive consumer goods, rose by more than expected while exports fell.
Corporate profits fell by 4.3% in the first quarter of the year – far worse than market predictions – and pending home sales in April also fell by more than expected. However, fewer Americans were filing for unemployment benefits.
Later today, we will see personal spending and personal income figures for April and Michigan consumer sentiment figures for May.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
