Dollar falls ahead of US growth data

The US dollar fell against a basket of major currencies on Thursday, due to profit-taking from a 2-month high, while demand slowed down following Fed officials' conflicting statements, and ahead of the US Q1 GDP reading.

The dollar index fell 0.15% to 91.66 points, after opening at 91.80 points, and hit an intraday low at 91.87 points.

The index rose 0.1% yesterday, posting its first gain in 3 days and hit a 2-month high of 92.40 points.

The US dollar also fell fell following conflicting statements by some Fed officials about inflation expectations and the future of the US interest rates.

Federal Reserve Chief Jerome Powell hinted in his testimony before the US Congress today that the Fed will adopt a patient approach and stick to its monetary policy for a while before raising interest rates.

Fed members Raphael Bostic and Michael Bowman said Wednesday that this period of high inflation may last longer than anticipated.

At 12:30 GMT, GDP growth is expected up 6.4% in the first quarter, up from 4.3% in the previous quarter, while GDP prices are expected up 4.3%. 

Unemployment claims for the week ending June 19 are expected down 30 thousand to 382 thousand, while continuing claims for the week ending June 12 are expected down 48 thousand to 3.47 million.