USD flows: USD slightly softer after GDP

Although US GDP fell 0.3% annualised in Q1, below the consensus estimate of +0.2%, the weakness was due almost entirely to a flood of imports looking to avoid impending tariffs. But measures of underlying demand were still strong. For instance, real final sales to domestic private purchasers was up 3%, and consumer spending was up 1.8% after a 4% gain in Q4. The USD has edged a touch lower, but this data is of limited significance with the market focus more on what happens in Q2 when tariffs come into effect.