Greenback Drops on GDP Data

Yesterday’s Federal Reserve announcement and the recent GDP data are putting a damper on the US dollar today. Greenback is heading lower as Forex traders mull the implications of a slowing economy.

US dollar is lower today, thanks in part to concerns about a slowing economy. While the economy is still growing, it is doing so at a slower pace. Yesterday, Janet Yellen issued the Fed’s most recent policy announcement and indicated that policymakers are keeping an eye on the slowing economy. While the announcement mentioned improved labor conditions, it conceded that there are indications that economic growth is slowing. Recent GDP numbers bear that out.
Greenback is heading down as Forex traders absorb this information and consider what the recent GDP data could mean for a future rate hike. A Fed hike seems to keep being put off as conditions change.
Also weighing on the dollar today is the surprise BOJ announcement staying the course, and leading to a huge jump for the yen.
At 14:43 GMT the US dollar index is down to 93.941 from the open at 94.406. EUR/USD is up to 1.1328 from the open at 1.1322. GBP/USD is up to 1.4554 from the open at 1.4543. USD/JPY is much lower, down to 108.6460 from the open at 111.4620.

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