Dollar hits 3-week low against euro ahead of GDP, Fed Remarks

The dollar edged lower against its rivals Wednesday ahead of a preliminary reading on first-quarter U.S. growth, and an updated policy statement from Federal Reserve policy makers.

The euro EURUSD, +0.22% traded above $1.10 for the first time since April 6, and hovered just below that level in recent trade. The shared currency traded at $1.0972 Tuesday afternoon in New York.

Investors largely expect a weak reading on first-quarter gross domestic product, analysts said, but the market will be closely watching the statement from Fed policy makers, due at 2 p.m. Eastern Time, for any indication that they’re considering pushing back rate hikes until 2016.

“The USD will be at threat to widespread weakness if suspicions that the Federal Reserve will swerve away from its repeated commitment to begin raising interest rates this year, but I am not expecting this to occur,” said FXTM Market Analyst Alex Gurr in a note to clients.

The ICE U.S. Dollar Index DXY, -0.12% , a measure of the dollar’s strength against a basket of rivals, was down 0.1% to 95.99.

Source: MarketWatch