U.S. Dollar Advances Despite Soft GDP Data

(RTTNews) - The U.S. dollar was higher against its major counterparts in the European session on Thursday, despite the release of a data showing a sharper-than-expected slowdown in economic growth for the first quarter.

Data from the Commerce Department showed that U.S. economic growth slowed much more than expected in the first three months of 2023.

The report said real gross domestic product increased by 1.1 percent in the first quarter after jumping by 2.6 percent in the fourth quarter of 2022. Economists had expected the pace of GDP growth to slow to 2.0 percent.

First-time claims for U.S. unemployment benefits unexpectedly declined in the week ended April 22nd, according to a report released by the Labor Department.

The report said initial jobless claims dipped to 230,000, a decrease of 16,000 from the previous week's revised level of 246,000.

Economists had expected jobless claims to inch up to 248,000 from the 245,000 originally reported for the previous week.

The greenback climbed to 1.2436 against the pound and 1.0999 against the euro, off its early lows of 1.2498 and 1.1063, respectively. The greenback may find resistance around 1.22 against the pound and 1.06 against the euro.

The greenback appreciated to a 1-week high of 0.8975 against the franc and a 2-day high of 134.05 against the yen, from its early lows of 0.8900 and 133.19, respectively. The currency is seen finding resistance around 0.91 against the franc and 138.00 against the yen.

The greenback recovered modestly against the loonie, touching 1.3640. The greenback is likely to face resistance near the 1.38 level.

The greenback rebounded to 0.6600 against the aussie and 0.6122 against the kiwi, up from an early low of 0.6635 and a 2-day low of 0.6161, respectively. Next immediate resistance for the currency is seen around 0.64 against the aussie and 0.59 against the kiwi.