EUR/USD reached today the highest level since December 13 on rumors that talks about Greek credit swaps are progressing. Today’s data eased concerns about the US economy that were caused by yesterday’s reports. The economy expanded last quarter and consumer sentiment improved this month.
GDP rose 2.8% in the fourth quarter according to the advance estimate. Growth was significantly bigger than in the third quarter (1.8%), but somewhat lower than market expectations (3.0%). (Event A on the chart.)
Michigan Sentiment Index rose from 69.9 in December to 75.0 in January. That’s compared to the preliminary estimate of 74.0 and analysts’ forecast of 74.2. The index was near its highest since the recession and was bolstered by employment growth. Confidence of consumers will continue to depend on job creation, the report said. (Event B on the chart.)
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