US GDP growth revised lower for 2nd qtr, Consumer survey rises. Dollar falls in currency trading. | CountingPips Forex Blog

September 26, 2008 - Forex Economic News

US GDP growth revised lower for 2nd qtr, Consumer survey rises. Dollar falls in Forex Trading.

The U.S. Commerce Department released its final estimated data on the U.S. gross domestic product today and the data showed that the GDP grew less than the previously reported prelimanary estimate. The U.S. economy grew at 2.8 percent in the April to June quarter according to the revised data after the previous estimate pegged the GDP growth rate at 3.3 US Forex Trading percent. Despite the revision, the second quarter GDP growth surpassed the first quarter GDP growth rate of 0.9 percent and the 0.2 percent contraction in the fourth quarter of 2007. Today's GDP release failed to match economic forecasts that were expecting the GDP growth to hold steady at 3.3 percent.

Exports continued to contribute positively to the GDP numbers as exports of goods and services increased by 12.3 percent in the second quarter after increasing by 5.1 percent in the 1st quarter. A decline in imports also helped contribute positively to the GDP as imports declined in the 2nd quarter by 7.3 percent following a decline of 0.8 percent in the 1st quarter. Consumer spending or personal consumption expenditures and the major driver of the U.S. economy increased by 1.2 percent in the 2nd quarter following an increase of just 0.9 percent in the 1st quarter.

Consumer survey rises in September.

The University of Michigan consumer confidence survey posted positive numbers today for the month of September in its final reading. The consumer sentiment survey report released by UMichigan/Reuters rose to a 70.3 score in September, up from 63.0 in August. The final September result failed to match the earlier preliminary estimate for September which registered a 73.1 score and was below market forecasts expecting a 71.0 score. The expectations index, which measures future economic sentiment, increased from 57.9 in August to 67.2 in September while the current conditions index edged up from 71.0 in August to 75.0 in September. Consumer expectations on inflation for the next year registered at 4.3 percent in September after posting a 4.8 percent expectation in August.

Forex Market - Forex market trading today has seen the U.S. dollar falling against the major currencies with the exception of the Australian dollar.

EUR/USD

The euro has shown a slight gain verses the dollar today as it is trading at 1.4614 today in the afternoon of the U.S. session and is looking to close the week higher verses the dollar for the second consecutive week. The last two weeks of trading has seen the EUR/USD pair advance from 1.4215 to over 1.4600.

GBP/USD

The British pound has advanced against the dollar to trading at 1.8432 dollars per pound today and is also looking to close higher for the week verses the dollar. The pound has closed higher verses the dollar for two consecutive weeks after falling verses the dollar for a string of seven consecutive weeks.

USD/JPY

The dollar has fallen against the yen in trading today at 106.11 yen per dollar after gaining verses the Japanese currency for the last three days. On a weekly basis, the dollar is on its way to losing ground against the yen for the second consecutive week and for the fifth out of the last six weeks.

USD/CAD

The U.S. dollar is losing ground to the Canadian loonie for the second consecutive day as this pair trades around 1.0320 today. The loonie is on its way to advancing against the dollar for the third consecutive weekly close.

USD/CHF

The dollar is also losing ground today against the Swiss franc as this pair trades at approximately 1.0902 today. The franc is on its way to gaining ground for the second consecutive week after falling to the dollar for a string of nine weeks in a row.

AUD/USD

The Australian dollar has lost ground today verses the dollar as this currency pair trades around the 0.8311 level on the last day of the trading week. The AUD is on its way to declining this week against the dollar after gaining the previous two weeks.

NZD/USD

The New Zealand kiwi has advanced today verses the USD as the pair is trading around 0.6848 after opening at 0.6817. On a weekly basis, the kiwi is declining verses the dollar this week after gaining the previous two weeks

USD/CHF Chart - The dollar falling vs. the Swiss franc for the second straight week in forex trading after a run of nine straight weekly increases(Weekly Chart).

Today's Forex Chart

tags: us gdp, economy, usd, forex trading, currency pairs

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