US dollar awaits Q1 GDP and the Fed
The new week will likely be bearish for the US dollar: we’ll see the Q1 GDP and the FOMC meeting outcome on Wednesday. What’s more, the US will publish personal expenditure data on Thursday and ISM manufacturing PMI on Friday.
The US economy is expected to have contracted over the first 3 months of the year. Economists blame the cold weather and the expensive dollar in the growth slowdown. Forecasts differ from 1% growth to zero. In Q4 the economy rose by 2.2%. However, some economists remain optimistic on the United States in the year 2015: in the past year, the first quarter also brought poor results, but growth rebounded quickly later in year.
Anyway, given the lowered growth the FOMC meeting is unlikely to bring any surprises next week. Rate hike expectations slipped to September or even December 2015. What’s more, there is no press conference on the schedule.