USD buying is picking up again after stronger than expected data. US GDP grew 2.3% annualized in Q1. While that was a slowdown from 2.9% growth in Q4, it beat expectation of 2.0%. The figure is also realistically well that could be sustained. Price index rose 2.0%, below expectation of 2.2%. Employment cost index rose 0.8%, above expectation of 0.7%.
EUR/USD is on track for 1.2 handle while USD/CHF is also heading to parity. GBP/USD is within touching distance to 1.3711 key support after post UK GDP selloff.
But it should also be noted that USD/JPY and USD/CAD are somewhat stuck in very tight range despite rally attempt. 109.50 in USD/JPY and 1.2900 in USD/CAD will now be the focus in the current US session.
