The U.S. dollar is falling against the euro for the second day today as the traders expect a decline in the contraction of the U.S. GDP for the second quarter of 2009.
The dollar is also falling against the British pound, approaching its monthly low levels, as the GDP optimism is forcing investors to buy high-yielding assets around the world. The gross domestic product advance report for Q2 2009 is expected to show a contraction by 1.5 percent today compared to 5.5 percent drop in the first quarter of the year. If the report is released according to the market’s forecast today, there is a good chance for the U.S. economy to come out of the recession by the end of 2009 or in the first half of 2010.
Forex market analysts recommend to pay attention to the recent important events that spur the attractiveness of the risky and high-yielding currencies: rise of the global stocks, steady price growth in U.K. housing market and a significant slope in the U.S. treasuries. The only problem that’s still able to kill the global optimism for recovery is the increasing unemployment in all the developed countries.
EUR/USD rose from 1.4065 to 1.4108 as of 7:54 GMT today after trading as low as 1.4006 two days ago. GBP/USD went up from 1.6491 to 1.6560, while USD/JPY gain insignificantly — from 95.55 to 95.60.
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