US Dollar Loses Ground Further on Lastest Economic News

US dollar is losing ground today, thanks in part to concerns that the economy is not ready to recover at quite the rate some had come to expect. The news is weighing on the greenback, and sending it lower against most of its major counterparts.

Earlier, the speculation had all been on the side of the Federal Reserve ending its asset purchase program sooner rather than later. However, things have changed with the latest economic data reports. The first quarter GDP in the United States only grew an annualized 2.4 per cent, when many expected it to grow at a rate of 2.5 per cent.
Also weighing on the US dollar is the fact that unemployment claims increased more than expected. All of this is leading to speculation that the Fed might hold off after all, since it might not make sense to pull economic stimulus quite yet. The prospect of continued quantitative easing is weakening the US dollar, and resulting in losses against many of the greenback’s major counterparts.
At 14:28 GMT the US dollar index is down to 83.0410 from the open at 83.5880. EUR/USD is up to 1.3028 from the open at 1.2940. GBP/USD is up to 1.5165 from the open at 1.5131. USD/JPY is a little higher at 101.1560 from the open at 101.1330. USD/CAD is down to 1.0341 from the open at 1.0351.

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