* US 1Q GDP disappoints, but inflation pressures rise
* EUR and GBP unable to extend gains, rally stalling
* Japan’s Golden Week holidays may trigger further JPY selling
* US April NFP jobs report on Friday
Another bad week for the US dollar, or was it a bad week for the Euro? The dollar remains under pressure, along with the JPY on the crosses, but European currencies are having difficulty extending their gains. And all this in a week where US data was mostly negative, culminating in the US advance 1Q GDP coming in below expectations at a 1.26% seasonally adjusted annual rate. If the market is unable to send the dollar lower after mostly deteriorating US data confirms the market’s negativity, what’s it going to take for the dollar to see further weakness? More likely than not, a shake out of short-US dollar/long Europe positions will be needed before the dollar can begin softening again. Full text »
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