The U.S. dollar was seen easing back from its strong patch of gains on Wednesday. The softer USD was attributed to the revised GDP estimates for the first quarter. Data showed that the U.S. economy expanded at a slightly slower pace of 2.2% in the first three months of the year.
This was slightly weaker than the 2.3% increase that was estimated previously. The ADP’s private payrolls data released on the day showed that private sector hiring added 178k jobs during the month of May. Previous month’s data was also revised down to 163k.
The data was seen to be slightly negative for the U.S. dollar as a result.
Looking ahead, the economic calendar for the day will see the release of the first quarter GDP numbers from Switzerland. Economists forecast a softer pace of growth of 0.5% during the period. Following the rebound in German inflation figures released yesterday, the Eurozone flash inflation estimates point to a 1.6% increase in headline CPI marking a strong acceleration from 1.2% previously. Core CPI is expected to rise 1.0% after registering 0.7% increase the month before.
Later in the day, Canada will be releasing the monthly GDP numbers. The median estimates point to a 0.2% increase in GDP following a 0.4% increase the month before.
