The US Dollar struggles to stay resilient ahead of the US Gross Domestic Product (GDP) data. The greenback could remain under pressure on signals of a cooling of the US economy, economists at Commerzbank report.

Positive review, shaky outlook

“A rate hike by ‘only’ 25 bps at the next Fed meeting is now increasingly likely following numerous comments of Fed officials along these lines. A surprise to the upside in today’s US growth data for Q4 expected by our economists is unlikely to change that, in particular as GDP data always constitutes a backward glance.”

“Leading indicators on the other hand signal a cooling of the US economy. If today's more current data on the labour market (initial jobless claims), order intake or the housing market confirm that the tightening of monetary policy is increasingly having an impact on the real economy, things will remain tough for the Dollar.”

See US GDP Preview: Forecasts from ten major banks, firm growth