The U.S. dollar remained flat on Friday despite some bullish fundamentals. The U.S. preliminary GDP report beat forecasts to rise 2.3% on the quarter. Economists’ forecast a 2.0% increase during the quarter. Despite the beat on the forecasts, the quarterly GDP was slower than the 2.9% increase seen previously.
Data from the UK disappointed as the UK’s GDP was seen rising just 0.1% in the first three months of the year. The British pound extended losses on the news release.
Looking ahead, the markets get off a busy start. The European trading session will see the release of the German retail sales report. Economists forecast that retail sales rebounded in March, rising 0.8% on the month. This would potentially offset the 0.7% decline seen the month before. Germany’s preliminary inflation report is also due to be released, and the data is expected to show a 0.1% decline in consumer prices following a 0.4% increase.
The NY trading session will see the release of the core PCE price index data. The Fed’s preferred gauge of inflation is forecast to rise 0.2% on the month, rising at the same pace as the month before. Personal spending and income data is expected to rise 0.4%. The U.S. pending home sales report is forecast to rise at a slower pace of 0.6% on the month after a 3.1% increase seen the month before.
