Forex Tips

U.S. Economy Grows by 2.5%

By Forexminute - Jonathan Millet | Forex Tips |

U.S. Economy Grows by 2.5%

The euro fell notably yesterday against the U.S. dollar as the German Inflation numbers disappointed the euro investors, hence signaling towards lower price increases of goods and services in the last month in Europe’s largest economy.

Plus the German unemployment change increased to 7000 that indicates the increased number of unemployment in the past month in Germany, hence resulting in the EUR/USD pair to started falling in the European session. This bearish move was fastened in the U.S. session where the U.S. Prelim GDP for the second quarter indicated that the economy grew by 2.5% against the previous figure of 1.7% and expected figure of 2.2%.

The pair lost 120 points yesterday after which it bounced back from its support at 1.3215 and is currently trading at 1.3238 in the start of the Asian session on Friday. Provided the pair moves below 1.3211 then it could create problems for the euro as its next target would be to test the support levels of 1.3172 and 1.3145. It will remain bearish and good to sell as long as it sustains below the 1.3335 critical resistance level.

Carney’s Words Stood the Pound Firm

The British pound remained in range but stayed firm against the greenback where it managed to stay above the support level of 1.5485 as Wednesday’s speech of BoE Governor Mr. Carney hinted a good recovery for the economy as it avoided the triple-dip recession this year.

However, the pair is still under the control of bears where bulls would be shy to enter if the pair does not move above and sustain above the 1.5545 resistance area; whereas, breaking of 1.5485 can result in showing the next support at 1.5464 and then Wednesday’s low of 1.5430.

Good Boost for USD

The U.S. dollar gained sharply against the Japanese yen on Thursday followed by the GDP data that showed massive improvement in the U.S. economy for the second quarter of 2013. The investor confidence in the U.S. dollar is still there as it is just like a safe haven for them, because even if any further clashes are held or attacks are done on Syria, the markets would fall and investors may invest in the U.S. dollar again.

Provided that the USD/JPY stays above the 98.10 critical support level on Friday, it would be a good buying opportunity for the traders where breaking of 98.45 could result in 98.74 and 98.05.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com

 

About: Forexminute - Jonathan Millet

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it off...


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