(menafn – ecpulse)
The spotlight shifts to U.S. news-flow on Wednesday with final revision of first-quarter GDP figures is expected to further downgrade the economy’s performance. May’s Durable Goods Orders report will also be closely watched.
The dollar drifted lower against some of its counterparts as investors remained cautious ahead of the final reading of first-quarter U.S. Gross Domestic Product (GDP) data which is expected to further downgrade the economy’s performance, revealing a 1.8 percent contraction.
That compares with a previously reported 1 percent drop decline.
Dollar steadied on Tuesday, trading at 80.38 after opening at 80.36. The USDIX so far hit intraday high at 80.40 and low at 80.33.
The GDP outcome, however, may not translate into downward pressure on the Dollar considering the now slump in the first three months of the year has clearly failed to derail the Federal Reserve’s effort to taper its stimulus program.
Against yen, dollar was trading at ¥101.924 0.04 percent up compared with ¥101.964 opening level, while hitting its highest through the day at ¥101.931.
Investors will be closely waiting for Japans inflation CPI report to be released on Friday, as any fresh signs of the country escaping deflation are likely to further curb prospects for additional Bank of Japan (BoJ) easing.
Sterling extended losses on Wednesday, after surprising dovish comments by the Bank of England (BoE) governor, Mark Carney cooled expectations of an interest rate hike later this year.
Pound extended losses against the greenback, falling 0.05 percent so far to trade at $1.69689 after opening at $1.69826. Against euro, pound declined 0.06 percent, pushing the EURGBP pair lower at $0.80163.
Carney’s comments on Tuesday drove currency markets, sending the pound to a one-week low and pulling further away from a 5-1/2 year peak set last Wednesday.
The euro was the main beneficiary of the pound`s losses, and stayed firm against the dollar.