LONDON (AFX) - The dollar clawed back a bit of lost ground in midday trade ahead of US data releases later in the day, dealers said. "The US GDP data is universally expected to be strong," Will Rugg at Standard & Poor's MMS said. However, he said that any gains are likely to be short-lived, with investors set to refocus on the prospect of a double dip recession after the data. "I reckon the euro will test its yearly highs of 90.65 next week," Rugg said. The dollar slid back lowest levels since Dec 19 on emerging doubts over the sustainability of the US recovery, losing almost 4 pct since its February highs alone, Kamal Sharma at Commerzbank said. "There are doubts about whether it (the US recovery) can be sustained after the correction in inventories," Rugg said. Concerns about when US companies will show an improvement in profits is also weighing on dollar sentiment. On Wednesday AOL Time Warner Inc announced a massive 54.240 bln usd loss in the first quarter, adding to the gloomy corporate earnings scenario. Investors are continuing to seek a safe haven in bonds and gold amid growing uncertainty over US recovery prospects. Gold is trading at 308.20 usd per ounce, just off yesterday's high of 308.70, the highest level for over 2 years. The euro slid back as profit takers moved in ahead of this afternoon's US GDP data, with the latest data on French business sentiment having little impact. The French INSEE index rose from 95 to 97 in April, on the back of better orders, although the personal outlook fell slightly from +9 to +8. Dealers say that the Swiss National Bank's has been buying dollars and euros today. Although the transactions are within the normal confines of its daily commercial activity, its decision to do it in a visible manner has a "psychological impact on the market", Rugg said. It sends out a signal that officials are not happy with the current level of the swiss franc raising intervention fears. The resulting jitteriness, coupled with ongoing Japanese intervention nerves, is helping to curb agressive dollar selling, Rugg said. Meanwhile, sterling was lower against the dollar, tracking underperforming euro/dollar after weak first quarter GDP data.