30 Jul 2015
EUR/USD falls to test 1.0900 amid a stronger US dollar
FXStreet (Córdoba) - EUR/USD is trading at the lowest level in a week, moving toward 1.0900. The pair printed a fresh daily low at 1.0908 as the US dollar gains momentum in the market.
The pair broke below 1.0940 after GDP data from the US and declined further after the beginning of the American session. The euro is among the worst performers in the currency market.
USD higher after GDP data
According to the latest report, GDP grew at an annual rate of 2.3% during the third quarter, below expectations of a 2.6% rate, but first quarter numbers were revised considerably higher.
“There were more revisions to the 2011-14 period with growth having been revised lower during that period, particularly in 2013. This may lead some at the Fed to conclude that the US may have marginally more spare capacity than previously thought, which would reduce the need for an imminent rate rise”, said James Knightley, senior global economist at ING. According to him given the rhetoric from officials and the focus on the labor data, they doubt that it would block a September hike “assuming the next two payrolls reports are strong – note that today’s initial jobless claims remain very low at 267k”.
Greece and the IMF
A report from the Financial Times explained that the International Monetary Fund cannot join the Greek bailout. Earlier, Alexis Tsipras called for an internal referendum at Syriza regarding the agreement with the EU.
Stocks in Europe are mixed, showing little changes from yesterday’s levels. In Wall Street, the Dow Jones was falling 0.35% and the Nasdaq was down 0.40%.
The pair broke below 1.0940 after GDP data from the US and declined further after the beginning of the American session. The euro is among the worst performers in the currency market.
USD higher after GDP data
According to the latest report, GDP grew at an annual rate of 2.3% during the third quarter, below expectations of a 2.6% rate, but first quarter numbers were revised considerably higher.
“There were more revisions to the 2011-14 period with growth having been revised lower during that period, particularly in 2013. This may lead some at the Fed to conclude that the US may have marginally more spare capacity than previously thought, which would reduce the need for an imminent rate rise”, said James Knightley, senior global economist at ING. According to him given the rhetoric from officials and the focus on the labor data, they doubt that it would block a September hike “assuming the next two payrolls reports are strong – note that today’s initial jobless claims remain very low at 267k”.
Greece and the IMF
A report from the Financial Times explained that the International Monetary Fund cannot join the Greek bailout. Earlier, Alexis Tsipras called for an internal referendum at Syriza regarding the agreement with the EU.
Stocks in Europe are mixed, showing little changes from yesterday’s levels. In Wall Street, the Dow Jones was falling 0.35% and the Nasdaq was down 0.40%.