The US dollar fell against the euro today after macroeconomic reports that were largely negative. Still, the currency managed to gain on the Great Britain pound and the Japanese yen, demonstrating the sixth consecutive session of gains.
The most important report today was the second estimate of gross domestic product in the first quarter of this year. The data showed a drop by 0.7 percent instead of the increase by 0.2 percent showed by the first estimate.
The problem with the indicator is that it is a lagging one, and many specialists argue that it did not show the underlying trend of the economy because the data had been skewed by the harsh winter. Yet other reports released today contradict such viewpoint, showing that the economy has had its problems during later months as well. The Chicago Purchasing Managers’ Index fell in April unexpectedly while the University of Michigan reported that the consumer sentiment deteriorated in May.
Basically, all the indicators suggested that economic recovery in the United States is uneven and it is too early to be overly optimistic. Such view is not helpful for the dollar.
EUR/USD rose from 1.0947 to settle at 1.0982. GBP/USD slipped from 1.5313 to 1.5285 and USD/JPY inched higher from 123.94 to 124.11.
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