US dollar remains lower on the Forex market, dropping as economic conditions continue to exert downward pressure. Greenback is lower as the latest news comes in about the GDP, and as Forex traders continue to weigh the latest statements from policymakers in the United States.
Today, economic numbers from the fourth quarter of 2011 were released, showing that the economy grew by 2.8%. This news was actually disappointing to analysts because many had predicted that the US economy would grow by 3% in the fourth quarter of 2011. The holiday season sales were less than expected, and that is contributing to disappointment with the US dollar, even though the end of 2011 was clearly better than the beginning.
It’s not helping, either, that jobless claims spiked. Unemployment claims rose by 21,000 in the week ending January 21, and that has added to the concerns about the US dollar. The US economy doesn’t seem quite ready to make a grand recovery.
Also pressuring the greenback right now is the response to the Federal Reserve‘s announcement earlier this week that interest rates will remain low until 2014. With the Fed Funds Rate remaining near zero, and the expectation of additional stimulus, the US dollar is heading lower.
At 14:20 GMT EUR/USD is higher at 1.3112, up from the open at 1.3109. GBP/USD is also a little higher at 1.5696, up from the open at 1.5690. USD/JPY is lower at 76.8495, down from the open at 77.4535.
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