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EUR/USD Surges as US Economic Output Increases Too Slowly

July 29, 2011 by

The euro rallied against the US dollar today immediately after the GDP report was released in the United States and continued to rise afterwards as more dollar-negative data figures were released there.

Annualized GDP growth in the second quarter of 2011 was at 1.3% in US. The growth followed a 0.4% rise (revised negatively from 1.9%) registered in the first quarter. The forecasts were pointing at 1.8% growth for the current report. (Event A on the chart.)

Chicago PMI decreased from 61.1 to 58.8 in July. This business confidence index was expected to arrive at 60.0 this month. (Event B on the chart.)

University of Michigan Sentiment index was down from 63.8 to 63.7 in its final revision for July, while the markets expected a slight increase to 64.0. (Event C on the chart.)

EUR/USD  as of 2011-07-29

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