US Dollar Mixed after GDP Data

US dollar is mixed today after encouraging GDP data was released. The latest numbers for the fourth quarter of 2011 indicate that the US economy grew 3%, which is better than the 2.8% pace originally reported. The news has helped the greenback pare some of its losses against the Japanese yen, and provided some support for Great Britain pound.

US GDP data suggests that the US economy might not experience a sharp drop in growth during 2012 after all. The latest revision, boosted by higher consumer spending, as well as an increase in the amount of commercial construction, helped growth in the last quarter of 2011.
The news hasn’t helped the euro much, though. Normally, the euro would be rising against the US dollar like the UK pound is right now. However, this is not the case today. Concerns about the eurozone continue after yesterday’s downgrades and today’s announcement of a huge financing effort from the European Central Bank. With the ECB allotting more than $713 billion for special financing for banks, there are concerns that things are worse than expected in the eurozone.
For now, the US dollar remains mixed, and it will be interesting to see what happens next. At 14:32 GMT EUR/USD is down to 1.3453 from the open at 1.3458. GBP/USD is up to 1.5968 from the open at 1.5901. USD/JPY is lower at 80.3400, down from the open at 80.4950.

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