The greenback is falling after Fed James Bullard’s comments for Fed's rate rises while U.S. GDP data released yesterday underlines Bullard's dovishness. EUR/USD at a fresh 12-month high following upbeat data released.
The U.S. dollar dropped against all the majors on Thursday during the U.S. session, following Federal Reserve President James Bullard’s comments and GDP revisions. Bullard believes that Fed is diverging from the global central banks in tightening the monetary policy, without strong data. "The U.S. is kind of trying to go it alone... which we can do and we certainly have done historically,", Bullard told during an event hosted by the Official Monetary and Financial Institutions Forum (OMFIF). "But if you want to go it alone in this environment you have to really have data that's coming in strong behind you and justifying what you want to do". He also added that, that “You can go independently - I just think it's hard in this environment with low rates around the world, negative rates in Europe and Japan... how realistic is it for the U.S. to have a (bond) yield curve that is dramatically above our foreign rivals?" It’s worth mentioning that Bullard does not currently vote in the U.S. Fed’s rate-setting committee.
For the first quarter of this year, U.S. GDP revised upwards up to 1.4% from 1.2% before, pulled up from the stronger consumer spending. However, the core personal consumption expenditure revised down to 2% versus 2.1% expected. The weekly initial jobless claims increased slightly to 244K from 242K before, above market expectations from 240K as well as the continues jobless claims, concerning a bit the market.
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