European focus: USD consolidates waiting for GDP data.[E]

USD slow down before the pivotal week-news on USA GDP in 1Q.

« Market predict strong GDP growth, says Lee Ferridge, from Rabobank Groep. « I suppose that USD is rebounding now on a bases of yesterdays overbought.»

Remind that USD seriously strengthened on Wednesday after issue strong new home sales data in USA has brought to speculations continuation of rate increase by FED. Today’s data can influence speculations from the both positive or negative sides. Expects Commerce Department will inform GDP increase to 5.8% high from the 3Q, 2003 year.

Forecasts considerably exceed a tentative estimation of 4.8 % which has been published on April, 28th. Signs of faster economy expansion may underpin the Fed to raise its benchmark rate for a 17th consecutive time at the nearest FOMC meeting next month.

Interest-rate futures show traders are priced in a 56% chance the Fed will take its target rate to 5.25% in June. Months started with 20% of such confidence

« Market players wait today for strong GDP data” – says Ian Stannard, currency analysts of London department in BNP Paribas SA. He adds: «Yesterday’s move shows that it’s not a time for USD recovery end.»

It’s likely seen the dollar will strengthen before the GDP output.