EUR/USD Recovers After S&P Downgrades Spain

EUR/USD started today’s session moving down as Standard & Poor’s downgraded Spain’s sovereign credit rating, but later the currency pair erased its losses and posted a fourth daily gain in a row. US economic growth last quarter was slower that previously estimated, but consumer sentiment was stable.
US GDP rose 2.2% in the first quarter of 2012 from the same period in 2011, according to the advance estimate. The data was not well-received as traders hoped for 2.6% growth. On the positive note, the increase in the fourth quarter of 2011 was revised upwardly from 2.8% to 3.0%. (Event A on the chart.)
Michigan Sentiment Index remained unchanged at 76.4 in April from March, according to the revised data. Analysts’ forecast of 75.8 was close to the preliminary estimate of 75.7. (Event B on the chart.)


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