US GDP grew more than expected in 2nd qtr, weekly jobless claims fall. Dollar gains in currency trading. | CountingPips Forex Blog

August 28, 2008 - Forex Economic News

US GDP grew more than expected in 2nd qtr, weekly jobless claims fall. Dollar gains in currency trading.

The U.S. economy grew more than expected in the 2nd quarter of 2008 according to a release by the U.S. Commerce Department and helping spur the U.S. dollar higher in currency trading today. The preliminary estimate report released today showed that the U.S. Gross Domestic Product grew at an annual rate of 3.3 percent in the April to June quarter following a 0.9 percent annual rate of growth in the 1st quarter and a 0.2 percent GDP contraction in the 4th quarter of 2007. The previous initial estimate had reported that the economy had US Dollar gains in Currency Trading expanded by 1.9 percent in the 2nd quarter. The GDP numbers surpassed economic forecasts expecting a rise of 2.7 percent for the quarter.

Exports continued to contribute positively to the GDP numbers as exports of goods and services increased by 13.2 percent in the quarter after increasing by 5.1 percent in the 1st quarter. Imports declined in the 2nd quarter by 7.6 percent following a decline of 0.8 percent in the 1st quarter. Consumer spending increased by 1.7 percent in the 2nd quarter following an increase of 0.9 percent in the 1st quarter.

Weekly U.S. jobless claims declined in the week that ended on August 23rd according to a separate report by the U.S. Labor Department today. Jobless claims fell by 10,000 workers to a total of 435,000 unemployed workers. A 4-week moving average fell by 6,000 from the prior week to 440,250. Meanwhile, workers continuing claims for unemployment benefits for the week ending August 16th increased by 64,000 workers while a four week moving average of continuing claims grew by 36,250 to 3,365,500.

US dollar gains in Currency Trading.

The U.S. dollar has been gaining ground today in currency trading against all of the major currencies on the better than expected GDP news. The euro has declined against the dollar today from the open at approximately 1.4791 dollars per euro to trading in the U.S. afternoon at 1.4694. The British pound sterling has also fallen verses the dollar today to trading at approximately 1.8275 pounds per dollar, falling from 1.8367 at the day's opening . The dollar has increased verses the Japanese yen as the USD/JPY currency pair has increased from approximately 109.20 at the start of the day to advancing to above 109.40 after noon today. Elsewhere, the Australian dollar has lost ground to the USD and trading below 0.8630 USD per AUD today while the Canadian dollar, Swiss franc and New Zealand dollar have all retreated verses the U.S. currency from the start of the day.

GBP/USD Chart - The pound sterling falling today against the dollar in currency trading today after the positive US GDP news(1Hour Chart).

Forex Chart

tags: gdp, jobless claims, currency trading, trade

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