Dollar Flat as U.S. Economy Slows in First Quarter

Investing.com – The U.S. dollar's recent run higher against its rivals Thursday was held back by weaker U.S. economic data showing the economy expanded at a slower-than-expected rate in the first quarter of the year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.14% to 94.89.

U.S. gross domestic product slowed to a 2% annual rate in the January to March period, the Commerce Department said in its final estimate on Thursday, missing economists’ forecast of 2.2%.

The U.S. Department of Labor reported that initial jobless claims rose by 9,000 to a seasonally adjusted 227,000 for the week ended June 23. That was well above economists’ estimate for rise to 220,000.

A rampant euro, meanwhile, also weighed on upside in the greenback as traders piled into the single currency amid data showing inflation in some German regions was above the ECB's target rate.

EUR/USD bounced from a session low of $1.1527 to trade 0.24% higher at $1.1581.

GBP/USD, meanwhile, moved off seven-month lows, and last traded at $1.3089, down 0.19%, as potential Brexit-related headline risks from the European Summit have been limited as the EU's migrant crisis dominated discussions.

Safe-haven currencies struggled to pare back losses from a day earlier as USD/JPY rose 0.08% to Y110.34, while USD/CHF rose 0.04% 0.9975.

USD/CAD fell 0.68% to C$1.3250 as oil prices gave up some of their gains, stifling the loonie, amid reports the White House was considering easing its tough stance on nations that import Iranian crude.

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