The US Government released Gross Domestic Product (GDP) data on Wednesday that showed that in the first quarter of 2009, the economy contracted at a faster rate than was initially expected. Analysts had predicted a 4.9 percent drop but the number came in at 6.1 and marked the first time the US Economy had shrunk in three consecutive quarters since 1975. The report showed that the US was still in a deep recession and that US business inventories had fallen by 103.7 Billion Dollars. Behind these numbers was an enormous 30 percent drop in exports, the largest drop since 1969, as well residential real estate investments dropped 38 percent and business investments fell a record 37.9 percent.
Even still, the Federal Reserve concluded their two day policy meeting and in what stock investors took as good news, did not lower the near zero interest rate any further. The Fed statement said that there are positive signs pointing to a recovery in the second half of 2009 and that no additional steps would be taken for now.
At 11:00PM GMT in online forex system, the US Dollar was down .75% to the Euro to 1.3244, down .9% to the Sterling to 1.4761, down 1.3% to the Canadian Dollar to 1.2034 and down 2.6% to the Aussie to .7244 and 2.2% to the Kiwi to .5707.
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