US Dollar consolidates daily losses, weaker below 89.00 handle ahead of US GDP

The USD selling pressure seems to have abated a bit, at least for the time being, with the key US Dollar Index now consolidating in a range around the 88.75-70 region.

Overnight greenback rebound, led by pro-dollar comments by the US President Donald Trump, ran out of steam on Friday and seller regained their dominant position through the mid-European session, despite a positive tone around the US Treasury bond yields. 

In what has been already a volatile week for the greenback, economic data would be back in focus as investors now look forward to the growth data due later during the NA session. Apart from the advance Q4 GDP print, today's US economic docket also features the release of durable goods orders for December. 

Investors will also focus on any fresh headlines coming out of the World Economic Forum in Davos, where Trump is expected to make a speech at 1300 GMT.

Meanwhile, today’s price action now seems to suggest that the recent bout of weakness might still be far from over, with any disappointment from today’s macro data could aggravate the selling pressure on the last trading day of the week. 

Nevertheless, the index remains on track for a 1.9% weekly decline, marking its biggest weekly loss since May 2017.