Goldman cuts US GDP forecasts on bad data

(Source: Yahoo! Finance)

*Goldman cuts GDP forecast
*Dollar tanks against the euro

The dollar has been hit hard against the euro following a torrent of bad data this afternoon. Goldman Sachs has cut its second quarter GDP estimate to two per cent on disappointing housing starts, which slid from 1.021m to 0.853m in April.

US inflation has dropped harder than expected as CPI ex food and energy fell from 1.9 per cent to 1.7 per cent in April on a yearly basis. analysts had expected a fall to just 1.8 per cent.

CPI dipped from -0.2 per cent to -0.4 per cent on the month as shale gas continues to drive down energy costs. Initial jobless claims disappointed this week as they grew by 360,000, exceeding predictions of claims of 330,000.