U.S. markets, with slight advances; Dollar, down after post-GDP rally
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DiggFXstreet.com (Barcelona) - U.S. markets have opened Friday's session with slight advances, after U.S. GDP was released to have contracted at a slower than expected contraction. The Dollar is giving back all the ground taken post-GDP.
Dow Jones Index edges down 0.11% while the Nasdaq Index losses 0.15%, and the S&P Index drops 0.25% half hour after the opening bell.
On the macroeconomic domain, U.S. Economy shrunk at a 1.0% pace in the second quarter of the month, lower than the 1.5% decline forecasted by market analysts, and well below the 6.4% decline in the first quarter.
A better than expected GDP, however, has failed to trigger risk petite, as, according to Kathy Lien, Director of Currency Research at GFT GDP data was staffed with economic weakness signals: "The GDP report was filled with underlying weakness. On top of the drop in personal consumption, prices grew at a slower pace. This means that demand and inflation is weak. Therefore the Federal Reserve won't be raising interest rates anytime soon."
Euro and Pound pick up after Post-GDP slide
EUR/USD was weighed by U.S. GDP data, and the pair pulled down from levels right below intra-day high at 1.4150 to test support level at 1.4100 which held the Euro pullback and the pair bounced to a fresh intra-day high at 1.4167.
GBP/USD dropped from 1.6575 intra-day high, on the back of U.S. Gross Domestic Product data, to 1.6475 support, and bounced afterwards, reaching levels above 1.6525 resistance with intra-day high at 1.6575 on sight.
USD/JPY was favoured after U.S. GDP, and the Dollar agve way all the gains achieved today dropping from 95.85 high moments before GDP data was released, 95.30 support, which, so far, remains intact.
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