The euro fell after the Fed's decisions

The euro continues to fall in price, and everything goes exactly as expected. The more or less balanced rhetoric of the U.S. Federal Reserve on the results of the July meeting and the confident GDP data for the second quarter gave the greenback even more strength. After declining in the first quarter by 2.1%, the U.S. GDP by the end of the April-June grew by 4% q/q. Yes, I personally had very conservative expectations for this release. Do not forget that the current report brings an important correction to the data at the beginning of the year. The main growth of the economy, according to the components of the report, was achieved by segments in consumer spending and an increase in inventories in warehouses. 
 
The yearly growth of the American economy is now estimated at slightly more than 1%. And that data is objective and informative for us. 
 
Today, investors will track the release of statistics on inflation in the euro area in July. This data is very important before the next meeting of the European Central Bank next week. It is already known that deflation "stands in full growth" in the region: the consumer price index, according to preliminary calculations, this time comes out at 0.4% y/y, which is weaker than the previous figure of 0.5% y/y 


RoboForex Analytical Department