The dollar fell before the expectation of economic growth in the US.
The US dollar index fell by 0.15% to 97.18. The fall continues.
The Department of Commerce said that consumer spending, accounting for about 70% of US economic activity, increased by 0.4%, which is in line with economists’ forecasts.
The consumer confidence index fell to 117.9, which was below expectations of growth to 119.8.
At the same time, it is important to note that the expectations and rates of investors were high that the Federal Reserve will raise the rate in June.
The recent political news around Trump significantly weakened the dollar. All previous progress was lost. Investors believe that the scandal will be the reason for delaying the economic reforms that are expected. These reforms should benefit the US economy.
EUR/USD recovered to 1.1184 dollars. Mario Draghi confirmed that an acceptable monetary policy remains necessary, despite rising inflation and economic growth.
«For domestic price pressures to strengthen, we still need very accommodative financing conditions, which are themselves dependent on a fairly substantial amount of monetary accommodation», Draghi said.
The pair USD/JPY fell to the price of 110.77, while the USD/CAD rose to 1.3465 US dollars, the reason for this growth was the impact of a fall in the price of oil.
GBP/USD is trading at the rate of 1.2852. (the levels on the picture below)
Analysis by AccentForex analyst Aarush Marwari.