USD Continues to Wither, Tonight's GDP Becomes Hope

<p>&nbsp;Investors continued to shed their hold on the US dollar in the European session, seeing the currency king slip lower against its main rival.</p><p><br /></p><p>At the time of writing, the dollar index, which measures the greenback's strength against six major currencies, was trading lower at 100.60.</p><p><br /></p><p>The Federal Reserve (Fed) has raised its interest rate to a 22-year high in the range of 5.25%-5.50% and left the 'door' open for future hikes.</p><p><br /></p><p>However, it is different from the market reaction which sees that the central bank is nearing the end of the tightening cycle.</p><p><br /></p><p>United States gross domestic product (GDP) data tonight will be the focus of the market which expects the economy to grow by 1.8% in the second quarter following 2% growth in the first quarter.</p><p><br /></p><p><br /></p><p>Heading into the New York session, investors' focus is also on the European Central Bank's (ECB) policy meeting and the follow-up speech from President Christine Lagarde.</p><p><br /></p><p>The European session saw the euro surge higher at around 1.1136 ahead of the meeting, supported by a weaker greenback.</p><p><br /></p><p>In the meantime, the pound continued to strengthen, approaching the price level of 1.3000 against the greenback.</p><p><br /></p><p>While commodity-related currencies, the Aussie, New Zealand and Canadian dollars continued to maintain gains against the US dollar despite a slight decline in the beginning.</p><p><br /></p><p>The yen remained stable with prices trading below the 140.00 level ahead of the Bank of Japan (BOJ) decision on Friday.</p>