US dollar declines after GDP Q1 revisions and rising jobless claims.

The US Dollar Index (DXY) fell on Thursday after rallying sharply on Wednesday. The gains associated with Wednesday’s bond market spike are already being reversed following the release of US GDP revisions and disappointing Jobless Claims statistics.
Despite some signals of a deteriorating labor market, the chances of layoffs in June and July remain slim.

Markets anticipate PCE results on Friday.

However, there is heightened anticipation for the Personal Consumption Expenditure (PCE) numbers going out on Friday, which have the ability to affect the next Federal Federal Reserve (Fed) expectations.

Daily Market movers: Dollar falls after dismal data

Investors are anxious after a poor GDP data, which showed signs of slowing consumer spending. The headline GDP estimate was reduced to 1.3%.
Markets are anticipating PCE statistics from April, which are coming on Friday and could influence the Fed’s choices.

Weekly jobless claims surged more than predicted.

The headline GDP estimate was reduced to 1.3%.
Markets are anticipating PCE statistics from April, which are coming on Friday and could influence the Fed’s choices.

Initial Jobless Claims increased from 216K last week to 219K.
Despite the increasing claims, the chances of a cut in June and July remain modest, with the likelihood hovering around 50% in September.

https://voiceoftraders.com/analysis/pound-sterling-recovers-with-a-focus-on-us-core-pce-inflation