Dollar Sell Off Follows Growth Data

Unexpectedly disappointing growth data from the U.S. on Friday led to the greenback’s broad fall during the Asian trading session. According to the report issued by the U.S. Bureau of Economic Analysis, growth during the first quarter of 2013 rose only to 2.5% against expectations of a rise to 3.0% annually. That economic news which followed other recent dismal data that included less than stellar durable goods orders and retail sales fueled a sell off as investors attempted to reduce their U.S. Dollar exposure as concerns growth about the outlook for the U.S. economy and the Federal Reserve’s likely response which could be to maintain its ultra loose monetary policy.

As reported at 4:49 a.m. (BMT) in London, the USD/JPY pair traded 0.4% lower at 97.60 Yen, well off the 4-year peak of 99.95 Yen which had been set earlier in the month. At one point during the trading session the GBP/USD pair traded at a 2-month peak of $1.5526 before easing back to $1.5513, still a gain of 0.2%. The Pound Sterling was buoyed in part by better than expected growth data from the U.K. which reduced expectations of additional easing from the Bank of England.