RTTN: Dollar Dips Against European Majors After Soft GDP Data
(RTTNews) - The U.S. dollar has been falling against its European major counterparts on Friday after a report showed that the rate of growth of the U.S. economy slowed more than expected in the first quarter of 2012.
The initial estimate of growth in the U.S. economy showed a 2.2 percent growth rate, down from the 3 percent growth posted for the final quarter of 2011, according to figures released today by the Commerce Department.
Most economists had expected the growth in the economy to drop from the 3 percent rate in the fourth quarter of 2011 though many forecast a somewhat stronger 2.5 percent growth rate.
The greenback slipped to a new multi-week low of 1.3271 against the euro, compared to a 3-day high of 1.3159 hit in early European trading. The next downside target level for the greenback is seen at 1.335.
After hitting a 3-day high of 0.9135 against the franc at 3:10 am ET, the U.S. currency fell. The greenback touched a fresh multi-week low of 0.9054 against the franc after GDP data with 0.90 seen as the next downside target level.
Against the pound, the greenback dipped to a new multi-month low of 1.6259 from an early 2-day high of 1.6156. If the greenback slides further, it may target 1.633 level.
The final report of the Reuters/University of Michigan's consumer sentiment survey for April is due shortly.
