The positive mood on the Forex market allowed the euro to rally for the third consecutive trading day. At the same time, the US economic indicators worsened. The data was not very bad by itself (the situation in the United States is certainly better than in the eurozone), but showed that economic growth is slowing.
US GDP rose 1.5% in the second quarter of 2012 from the first quarter, according to the advance estimate, matching forecasts exactly. The growth in the Q1 2012 from the Q4 2011 was at 2.0%. (Event A on the chart.)
Michigan Sentiment Index slipped from 73.2 in June to 72.3 in July, according to the revised estimate. Analysts thought it to be unchanged from the preliminary figure of 72.0. (Event B on the chart.) The report said:
The good news is that consumers do not expect the economic slowdown to prompt an
economy-widerecession; the bad news is that consumers do not expect the pace of economic growth to revive job and income prospects.
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