The Greenback came under selling pressure yesterday as markets eagerly awaited the FOMC statement and rate decision released late last night. This highly anticipated event saw the Central Bank leave rate unchanged at 0.5%, while the following statement was pretty much as expected. The Fed avoided discussions on current global events that have been posing risks to global growth and left the assumption of a June rate rise untouched.
Data wise, the economic calendar was relatively light. UK GDP posted a slightly better figure at 2.1% for the year, whilst the quarterly reading met forecasts of 0.4%. Gross Domestic Product was slightly slower than last quarter’s 0.6% as a drop in Manufacturing and Construction output was seen.
The only high piece of economic data that will be posted today is the US advance GDP Q1. This is the initial reading for quarter one 2016 in the US and is set to show a reading of 0.7%. If this figure is seen, it will show that the economy has started on the right foot. As most are expecting a further rate increase from the US, the GDP is an important gauge to see if there is still the chance of this happening in 2016. Also the weekly US Unemployment claims figure is released in the afternoon.