US dollar moved higher against the pound yesterday, but is being broadly sold again this morning

The US dollar trimmed strong early gains against the pound after a Federal Reserve statement left a negative dollar tone in the market going into the close.

• Risk sentiment again seemed to be off the table in trading yesterday after the US 3rd quarter GDP figure was revised downward to show that the economy only expanded at a rate of 2.8%, down from a previously estimated 3.5%.
  
• The data showed a wider trade deficit and lower consumer spending than previously thought, which encouraged investors to drop riskier assets.
  
• In the UK, speaking to the parliament's Treasury Committee, BoE Governor Mervyn King said considerable uncertainty about the economic outlook remained and that it would still take a long time for the level of output to return to more normal levels.
  
• Analysts said the comments offered little new in terms of policy outlook for the economy, which kept the pound under pressure.
  
• In the evening though, the dollar came under pressure, capping its gains, after the minutes from the Fed's most recent meeting reiterated the need to maintain their low interest rate policy.
  
• Dollar selling has continued this morning, with the pound currently trading 0.75% higher, pushing the price back over $1.67.