Dollar Firms After GDP Revised Upwards -- Update

By FeaturesDow Jones Newswires

The dollar edged higher Friday after a measure of U.S. economic growth was revised higher for the first quarter of the year.

The WSJ Dollar Index, which measures the U.S. currency against 16 others, rose 0.1% to 88.86.

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Gross domestic product, a broad measure of the goods and services produced in the U.S. economy, rose 1.2% in the first quarter, compared with last month's estimate for 0.7% growth. Though that represented a slowdown from the fourth quarter's 2.1% growth rate, it was still above consensus expectations.

"The dollar has been looking a bit more stable," said Shaun Osborne, chief FX strategist at Scotiabank. "There were some positive nuggets in the GDP numbers."

A separate report from the Commerce Department showed demand for long-lasting factory goods fell in April, hinting at potential speed bumps for the manufacturing sector.

The dollar was also supported by selloff in the British pound. Sterling slid 1% against the dollar after the first opinion poll conducted since Monday's deadly bombing in Manchester showed the U.K.'s ruling Conservative Party lost ground to rivals ahead of a national election June 8.

The poll "raised questions on whether May would be able to secure enough of a majority and mandate to fend off Brexit hard-liners and deal with difficult Brexit negotiations in a smoother, less turbulent manner," said James Chen, head of research at Forex.com.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

(END) Dow Jones Newswires

May 26, 2017 17:13 ET (21:13 GMT)