EUR/USD Struggles to Rally as US GDP Trails Forecasts

EUR/USD was attempting to gain today as worse-than-expected growth of US gross domestic product weakened the dollar. Currently, the rally is small as other US reports were good, while data from Europe remains negative.
US GDP grew 2.5% in the first quarter of 2013, according to the advance estimate. The growth was below the predicted 3.1%, but well above the previous quarter’s 0.4%. (Event A on the chart.)
Michigan Sentiment Index was at 76.4 in April, according to the revised estimate, while the preliminary report pointed at 72.3. The actual value was better than the forecast of 73.3, but still worse than the March’s 78.6. (Event B on the chart.)
Yesterday, a report on initial jobless claims was released, showing a drop from 355k to 339k last week, instead of the expected 352k. (Not shown on the chart.)


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