Greenback falls on GDP expectations

08-01-2009 15:22

For the second day the Greenback is dropping versus the Euro today as a result of traders speculating on a decreasing American gross domestic product (GDP) for the second quarter of this year. The US Dollar is also loosing versus the Pound Sterling, reaching levels close to the lowest of this month, on the back of optimism caused by the GDP, which obliges investors to obtain high-return investments around the globe.

GDP

Today’s report regarding the US GDP will probably prove a shrink of 1.5%, in comparison with the 5.5% contraction in the initial quarter of 2009. It is likely that the US economy will leave the recession behind at the end of this year or in the first six months of next year if the report corresponds with the estimations by the markets.

Expectations

Forex specialists suggest to monitor the latest important events on which high-return currencies become much more interesting. Events such as a solid price growth in the British housing sector, increasing worldwide equities and a considerable fall in the US public funds. Only the number of unemployed persons in all the industrialized countries could frustrate the worldwide prospects for improvement.