EUR/USD reversed its upward trend today as the European Union leaders cut the startup bailout fund and Portugal’s credit rating was downgraded by Standard & Poor’s yesterday. The US gross domestic product showed a solid economic growth, but the consumer sentiment posted a sharp drop. EUR/USD trades currently at 1.4113.
GDP increased at an annual rate of 3.1% in the fourth quarter of 2010, according to the final estimate. The median forecast was 3.0%. In the third quarter, real GDP increased 2.6%. (Event A on the chart.)
Michigan Sentiment Index in its revised release was below both the preliminary estimate of 68.2 and the February reading of 77.5, posting the reading of 67.5 in March. The sharp decline was explained by the rising gas and food prices. (Event B on the chart.)
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