David Song, Currency Analyst at DailyFX, Comments on the US Dollar

"The advance U.S. 1Q GDP report for the highlights the biggest event risk for the next 24-hours of trading, and the developments coming out of the world's largest economy may increase the appeal of the greenback as the region is expected to expand at a faster pace. Indeed, the growth rate is projected to increase an annualized 3.0% after expanding 0.4% during the last three-months of 2012, and the pickup in economic activity may encourage a greater number of Fed officials to adopt a more neutral to hawkish tone for monetary policy as the U.S. gets on a more sustainable path. Although the FOMC continues to promote its highly accommodative policy stance, it seems as though the central bank is slowly move away from its easing cycle, and the Fed may start to lay out a tentative exit strategy later this year as the outlook for growth and inflation improves."