GDP plunges, futures rise
US Futures were at the higher end ahead of game changer PCE data
The dollar rises near 101.70 & the pound eases to 1.244
GDP figures for the US, grow 1.1% compared with 2.6% in the previous quarter
Dollar stabilizes post GDP downturn
The US GDP grew only 1.1% compared to 2.6% in the previous quarter, before the opening bell, US futures were in the green territory with S&P 500 near 4,080.
Despite treasury secretary Yellen comments overnight regarding the debt ceiling crisis, the dollar stabilized today while gold prices remained pinned near $2000 ahead of the widely expected PCE.
Yellen warned of the danger of the US debt ceiling crisis, pointing out that the US defaulting on its debts would lead to an economic and financial catastrophe.
Other economic data including the durable goods orders exceeded expectations on a positive note, supporting the stability of the USD.
Markets are closely watching the upcoming Federal Reserve meeting, with increased expectations that the bank will raise interest rates by a quarter point and then pause temporarily in its June meeting.
Gold breaks strong $2000 resistance
Meanwhile, gold prices retreated swiftly after surpassing 2000 dollars amid positive tech earnings.
Sterling loses steam
The sterling retreated after yesterdays sharp rise, on the back of added pressure on the USD from renewed recession fears as First Republic Bank plummeted sharply overnight following the bank's announcement of a sharp drop in deposits in the first quarter of this year.
The pound began trading today with a slight increase against the US dollar, but retreated near $1.244
As for economic data, investors are turning their attention at the end of this week to PCE index as it is the preferred inflation indicator for the US Federal Reserve