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EUR/USD Gets Rallied by GDP Report

July 31, 2009 by

EUR/USD rose today more than twice as much as yesterday as the news about 2nd quarter U.S. GDP change spurred bullish confidence in the euro and other high-yielding currencies. EUR/USD is now trading near 1.4134.

Advance estimate for the U.S. GDP change in the second quarter of 2009 came out at 1.0% decrease, which is better than the average forecast of 1.5% decline. But the first quarter’s GDP drop was negatively revised from -5.5% to -6.4%, which was quite a disappointment for the market participants.

Chicago PMI Business Barometer index went up from 39.9 to 43.4 in July, showing a good improvement in the business conditions, but still indicating an overall bad outlook for the industry. The forecast was near 43.0.

Yesterday, the initial jobless claims report was released for the last week, showing an increase from 559k to 584k claims, surpassing the 570k value of the forecasts.

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