Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders

Archives

Dollar Continues to Advance on GDP Growth

January 29, 2010 by

The dollar touched a new record for 2010 versus the euro as a quarterly gross domestic product report published today surprised traders with actual figures coming considerably above forecasts, suggesting that the U.S. economic recovery is accelerating, and allowing the dollar to post a weekly gain versus a less attractive euro due to some Eurozone member countries rising budget deficits. Currently EUR/USD is falling at 1.3913, the lowest rate for 2010 so far.

U.S. GDP figures increased at an annual rate of 5.7% in the last quarter of 2009 from the third quarter, according to the “advance” estimate released by the Bureau of Economic Analysis. These figures surprised forecasts positively as they expected a less significant growth of 4.5%. In the third quarter, the GDP grew 2.2% from the second quarter.

Chicago PMI advanced to 61.5 in January from a previous revised rate of 58.7 and for another month above forecasts that expected 57.3.

Michigan Consumer Sentiment index rose to 74.4 in January from a previous reading of 72.5 in December. Forecasts expected this index to be below actual figures but also showing improvements at 73.1.

If you have any comments on the recent EUR/USD action, please, reply using the form below.

Leave a Reply

required
required (will not be published)