EUR/USD confirmed its downtrend intentions today falling from yesterday’s retracement to 1.4740 level. One of the reason for a stronger dollar can be seen in expectations for the increased real GDP growth in third quarter of 2007.
U.S. Bureau of Economic Analysis released its preliminary report on real Q3 Gross Domestic Product. The growth was higher than the previous advance value for third quarter — 4.9% against 3.8% and the same as analysts expected (that were quite optimistic with this indicator). As it was stated by Bureau, the growth was mainly caused by increased exports (thanks to a cheap dollar, I suppose).
Initial jobless claims report for the last week was opposite to GDP. In the week ending Nov. 24, the advance figure for seasonally adjusted initial jobless claims was 352k. That is 23k above the previous revised (from 330k) value of 329k and expected 330k.
New home sales disappointed dollar and U.S. stocks bulls too. Annualized and seasonally adjusted October number was just 728,000 whereas at least 750,000 were expected. And September value was also revised down from 770,000 to 716,000.
