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Decent US GDP Could Cause a New Wave of Dollar Growth

On Wednesday the euro was down after the FOMC convened and on Thursday it renewed its minimum on the back of German employment data. Unemployment in June rose in the country by 9,000 (forecasted fall of 5,000). The unemployment level remained unchanged at 6.4% with this indicator meeting expectations.

The euro/dollar fell to 1.0941 and then rebounded on CPI and business confidence figures for the Eurozone. The economic confidence index rose from 103.5 to 104.0. The business climate index rose from 0.14 to 0.39. At 14:26 EET, the euro/dollar was trading 1.0961 and the pound/dollar was trading 1.5634.

At 15:30, the US is publishing its GDP data for Q2. This is the key event of the day. It’s expected that the country’s economy has expanded by 2.6% after a Q1 fall of 0.2%. The dollar will rise throughout the market if the data meets expectations. The bigger the value, the stronger the dollar will go.

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