On Tuesday, the EUR/USD pair moved upwards a little bit during the correction, but started slowing down after the American statistics was released.
The Eurodollar stopped its decline yesterday evening, when capital markets started getting accustomed to the idea that the Brexit was inevitable. At the same time, investors’ interest to “safe haven” currencies reduced and market players’ attention slowly turned to the FOMC meeting in July. The current quote for the EUR/USD pair is 1.1051; the daily high was at 1.1109.
The German statistics was published in the afternoon, and investors paid no attention to it. Import prices increased in May by 0.9% against the reduction by 0.1% the month before. On a year-on-year basis, decrease in May was by 5.5% and it is much better than predicted.
But the evening statistics from the USA attracted a lot of attention. According to the final calculations, the country’s GDP in the first quarter increased by 1.1% q/q, which is better than the first number of 1%. In the previous quarter, the American economy increased by 0.8%. These numbers are good, because they are supported by the growing corporate expenses and export numbers. However, the amount of investments is still a soft spot for the USA: in the first quarter of 2016, the indicator fell to the numbers of 2009.
Among “soft” spots of the GDB, one should pay attention to consumer spendings. On top of that, companies continue economizing on equipment, buildings, and production.
It appears that the current growth of the American GDP is just a fortuitous combination of circumstances, because there isn’t much foundation for it, the same as before.
RoboForex Analytical Department
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