NEWS / Foreign Exchange

The dollar was weaker on Friday as traders reacted with disappointment Q1 US GDP figures

The dollar was weaker on Friday as traders reacted with disappointment weaker than expected first quarter US GDP figures. Although the core consumers??™ expenditure deflator was stronger than anticipated, the news that the US economy could only manage annualised growth of 1.3% in the first three months of the year, down from 2.5% in Q4, dominated sentiment. However, whilst the greenback slipped 0.3% against the pound, it closed up 0.2% for the week.

With little in the way of data on either the UK or the Eurozone, the euro drifted off 0.1% against the pound, but still ended the week up a net 0.5%.

As a result, and after having fallen to an all time low earlier in the day, the dollar ended the session 0.2% against the euro.

Meanwhile, disappointing economic data undermined the yen, with Japanese core consumer prices weaker than expected and household spending down on the month. Although Bank of Japan officials tried to calm investor nerves by saying the economy was on track to deliver growth and a ???normalisation of prices???, the yen still ended the day down 0.2% against an otherwise soft dollar.

Consequently, the yen sank 0.4% to yet another all time low against the euro.

The Swiss franc lost ground against the euro, but edged up 0.1% against the dollar.