The US dollar reacted to positive data during the day yesterday as the second quarter advance GDP figures came our much better than expected showing growth of 1.7% for the world largest economy – much greater than the 1.1% initially forecast. More positivity came as employment data came in better than expected, leading to analyst predicting that Fridays’ highly influential Non-Farm payrolls data could also be positive. The US dollar experienced high levels of volatility across the board and movements in both directions as traders held their collective breath ahead of the evening’s statement from the Federal Open Market Committee. Traders had been speculating the statement might reveal further clarity regarding the so called tapering of the Federal Bank’s bond buying program, however, no such details were given and the committee stated that it was “prepared to increase or decrease” its bond buying program where necessary, whilst stating that deflation could hard harm the US economy. As traders continue to evaluate the more long-term implications of last night’s release, the dollar may be affected by further economic data that is coming out today. Weekly data detailing the number of first time unemployment claims made is being released this afternoon as well as Manufacturing Purchasing Managers Index data. Both of these are key economic indicators so call your trader now to see how markets respond as they continue to deliberate on the future course of US economic policy.