The US Dollar managed to regain previously lost traction on expectations that the US Federal government will be able to avoid shutting down. Over the weekend, negotiators from the U.S. Congress came to an amicable agreement that would ensure funding of federal programs through September 30th. That news helped to temper last Friday’s economic data; according to the US Bureau of Economic analysis, preliminary figures show that the US economy’s annualized GEDP growth in Q1 fell to 0.7% from 2.0%, well off forecasts of a decline to 1.2%. Records show that if those numbers are borne out, that will be the weakest first quarter pace in three years.
As reported at 11:24 am (BST) in London, the EUR/USD was trading at $1.0902, up 0.04%; the pair earlier hit a peak of $1.0919 while the session low was set at $1.0885. The GBP/USD was down 0.12% to trade at $1.2935, off the session high of $1.2954 while the low was at $1.2902.
Traders look to US Data
While markets in Europe and Asia are closed for a holiday, traders will focus their attention to a slew of data coming out for the US economy today. Among the potential market moving announcements, ISM manufacturing PMI for April is forecast to show a decline to 56.5 from March’s 57.2 while ISM Prices Paid should show a drop to 67.7 from 70.5. Construction spending numbers are also ahead, as are personal spending and personal consumption expenditures for March. Investors expect to see that consumer spending has stalled, however investment in business should have positive momentum.