US Dollar: focus switched to the NFP
The US Dollar was heavily sold against all the major currencies last week. The pressure was especially strong in a trade versus the European currencies – euro, pound and Swiss franc.
The US Q1 GDP disappointed the market: economy added only 0,2% over the first quarter versus 1% projected. The FOMC meeting didn’t bring any surprises: the Fed admitted the economic slowdown, but reviews it as seasonal. Market expectations for a rate hike hold on Q3, while hopes for a June hike evaporated. We’ll focus on the dataflow – how much time will it take for the economy to recover from winter? US dollar has more potential for a decline until the figures improve.
Next week is rich for releases, but the market will clearly focus on the April non-farm payrolls on Friday. The US economy added only 126K new jobs in March.