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27 Aug 2015
EUR/USD drops to weekly lows after US GDP
FXStreet (Córdoba) - EUR/USD came under renewed pressure and printed fresh 6-day lows after data showed US gross domestic product grew at a faster pace than initially estimated in the second quarter.
US GDP expanded at a 3.7% seasonally adjusted annual rate in the second quarter up from the initial estimate of 2.3% growth and beating expectations of a 3.2% rise. Meanwhile, the PCE price index, the Fed’s preferred measure of inflation, rose 2.1% in the Q2 versus 2.0% expected.
As for employment, separated data showed US initial jobless claims dropped to 271K in the latest week down from 277K and versus 274K expected.
Investors are closely monitoring US economic data as the Fed has made it clear that the timing of the lift-off will be data dependent.
The dollar strengthened across the board and dragged EUR/USD to a fresh low of 1.1248, last seen Aug 21. At time of writing, the pair is trading at 1.1250, recording a 0.55% loss on the day and having already retraced all previous weekly gains.
US GDP expanded at a 3.7% seasonally adjusted annual rate in the second quarter up from the initial estimate of 2.3% growth and beating expectations of a 3.2% rise. Meanwhile, the PCE price index, the Fed’s preferred measure of inflation, rose 2.1% in the Q2 versus 2.0% expected.
As for employment, separated data showed US initial jobless claims dropped to 271K in the latest week down from 277K and versus 274K expected.
Investors are closely monitoring US economic data as the Fed has made it clear that the timing of the lift-off will be data dependent.
The dollar strengthened across the board and dragged EUR/USD to a fresh low of 1.1248, last seen Aug 21. At time of writing, the pair is trading at 1.1250, recording a 0.55% loss on the day and having already retraced all previous weekly gains.