Dollar drops due to disappointing data

 The US Dollar witnessed a drop as data from the US economy disappointed investors and fueled expectations that rates will stay at their current low level, a local report read on Sunday.
The US economy contracted in the first quarter by the most since the depths of the last recession as consumer spending receded. Gross domestic product fell at a 2.9pct annualized rate, more than forecast and the worst reading since the same three months in 2009, after a previously reported 1pct drop, according to National Bank of Kuwait.
Consumer spending rose less than expected in May, likely held back by weak healthcare spending, which could prompt economists to temper their second-quarter growth estimates.
The Commerce Department said last week that consumer spending increased by 0.2pct after being flat in April. Spending, which accounts for more than two-thirds of US economic activity, was expected to rise 0.4pct after a previously reported 0.1pct dip in April.
In Europe, preliminary data on Friday showed that German consumer price inflation rose 0.3pct this month, more than the expected 0.2pct gain, after a 0.1pct fall in May. The data dispelled concerns that the Euro zone may slip into deflation. The Euro gained against the greenback and euro-area government bonds declined, following the announcement.
The Office for National Statistics stated last week that the UK's gross domestic product expanded by 0.8pct in the first quarter, in line with market expectations.
A separate report showed that the UK current account deficit narrowed to GBP 18.5 billion in the three months to April, from GBP 23.5 billion in the fourth quarter of 2013 whose figure was revised down from a previously estimated deficit of GBP 22.4 billion