The USD continues to get back its losses
The latest events that get the USD back to its previous positions enabled the US currency to return all it has lost. The recently issued data about durable goods orders appeared to be quite higher than it was forecasted.
Due to experts’ opinions this may possibly lead to the strong US GDP in the second quarter. According to Paul Ashworth a senior US economist at Capital Economics the issued report showed the growth of 2.5 percent on the year. Moreover the consumer confidence index issued by the University of Michigan also turned to be above the expectations. It has increased to 61.2 instead of 56.4 points forecasted.
Another point contributed to the stronger GDP data on the second quarter was better numbers of US new home sales. Its lowest fall occurred in the past month.
Therefore according to Robert Howard at Thomson IFR Markets the US currency gets its support from the combination of positive reports of durable goods orders, consumer confidence index and the volume of new home sales.
The latest forex trades showed the Euro traded at $1.5680. The British pound has increased in relation to Euro after the release of the second quarter GDP numbers that reached 0.2 percent growth instead of 0.3% predicted.
According to the experts’ opinion the Bank of England will not change the interest rates in the August. Due to Philip Shaw at Investec the decrease of interest rates is still quite long to wait. It may be that only in 2009 the monetary policy will be changed somehow.
The Euro reached 0.7878 British pound. The UK currency was still decreased in relation to the USD due to recent strong US economic numbers and was traded at $1.9893.
