13::25GMT - Mkt. has dropped to the 0.8906/9 lows which are holding so far. Bounce res. is at 0.8930 and, while prices hold below here, we think further decline will follow. Next downside targets are at 0.895 then 0.8860. The higher res. is at 0.8945.N.I.
The dollar fell against major currencies Wednesday after the third and final revision for gross domestic product arrived far lower than economists expected, suggesting the U.S. economy's recovery has further to go before the Federal Reserve will raise interest rates.
The greenback dropped versus the yen to JPY101.68 from JPY101.92 before the number's release, now down 0.3%. Meanwhile, the euro jumped to as high as $1.3652 from $1.3616, up 0.3%.
The Commerce Department lowered the rate of GDP contraction for the first quarter to 2.9%, marking the sharpest pullback since the recession ended five years ago. Analysts had expected a contraction rate of 2%, and the actual rate was much lower than the second revision of 1%.