The recent slowdown in the US economy was compounded on Wednesday with poor GDP figures, at the lowest level for a year. This affected the US dollar a great deal; it continued to weaken moving to two month lows against sterling and broke through the 1.11 level against the euro. Yesterday’s Federal Reserve meeting also highlighted their worries over the US economy when keeping US interest rates on hold and making it clear that until growth returns an interest rate rise in June is unlikely.
The US dollar will be looking for any positive news to help stop the free-fall we have seen over this past week. Data releases today include weekly unemployment claims, forecast to remain high, and personal spending which hopefully show a positive increase.