The US economy slowed more than expected in the first quarter of 2018 amid weak performance in consumer spending over nearly 5 years, with gross domestic product growing by 2% on yearly basis, and that was the third estimate of GDP.
The economy grew by 2.9% in the last quarter of 2017. The $ 1.5 trillion income tax cut package, which came into force in January, is seen as stimulating economic growth faster in the second quarter, driving GDP to meet Trump's administration growth target by 3%.
The dollar slipped against a basket of currencies following the data slightly from its highest level since June 21 at 95.53 and is currently trading above the resistance level we mentioned yesterday at 95.14.
With the first day of the EU summit on Thursday, the EUR is experiencing a significant rebound and returned to trading at the important support level at 1.1550. Also, the Sterling dropped to test the support area we mentioned yesterday at 1.3060/90 and could move below it to the 1.2940 level which represents the 61.8% Fibonacci retracement level.
