Dollar Firms After GDP Revised Upwards
May 26 2017 - 5:28PM
Dow Jones News
By Chelsey Dulaney
The dollar edged higher Friday after a measure of U.S. economic
growth was revised higher for the first quarter of the year.
The WSJ Dollar Index, which measures the U.S. currency against
16 others, rose 0.1% to 88.86.
Gross domestic product, a broad measure of the goods and
services produced in the U.S. economy, rose 1.2% in the first
quarter, compared with last month's estimate for 0.7% growth.
Though that represented a slowdown from the fourth quarter's 2.1%
growth rate, it was still above consensus expectations.
"The dollar has been looking a bit more stable," said Shaun
Osborne, chief FX strategist at Scotiabank. "There were some
positive nuggets in the GDP numbers."
A separate report from the Commerce Department showed demand for
long-lasting factory goods fell in April, hinting at potential
speed bumps for the manufacturing sector.
The dollar was also supported by selloff in the British pound.
Sterling slid 1% against the dollar after the first opinion poll
conducted since Monday's deadly bombing in Manchester showed the
U.K.'s ruling Conservative Party lost ground to rivals ahead of a
national election June 8.
The poll "raised questions on whether May would be able to
secure enough of a majority and mandate to fend off Brexit
hard-liners and deal with difficult Brexit negotiations in a
smoother, less turbulent manner," said James Chen, head of research
at Forex.com.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
May 26, 2017 17:13 ET (21:13 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.