US dollar is a little bit higher against its major counterparts today, gaining ground after the latest economic report from the second quarter of 2013. Although there isn’t anything particularly stunning in the report, the economic continues to show a steadiness that leads some to believe that the taper in the Federal Reserve’s asset purchase program is eminent.
Overall US economic growth remained at 2.5 per cent for the second quarter of 2013, according to the Commerce Department. Even though many expected GDP to be revised upward to 2.7 per cent, the fact that the final review remains steady is helping matters a bit. Consumer spending remains unchanged, and sales of US goods and services was revised upward to 2.1 per cent from 1.9 per cent.
All of this steadiness indicates that the current rate of economic expansion in the United States is sustainable, and may be grounds for a reduction in quantitative easing. However, this view is tempered somewhat by concerns over a looming budget battle for Congress. Republicans in the House of Representatives are threatening government shutdown.
At 13:26 GMT EUR/USD is lower, dropping to 1.3494 from the open at 1.3526. GBP/USD is also lower, falling to 1.6022 from the open at 1.6080. USD/JPY is gaining ground, heading up to 98.9300 from the open at 98.4400.
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