The U.S. dollar is trading higher than its yesterdays close level now as the investors are waiting for the fourth quarter GDP data to be released today.
The final value of the fourth quarter 2007 U.S. gross domestic product and the weekly initial jobless claims number will be released today and can significantly change the dollars trend on Forex.
If the GDP value is released below 0.6% (the mean expected value and the previous estimate by the Bureau of Economic Analysis), the traders confidence in the fact that the U.S. economy is in the recession will rise and the dollar will continue to fall at an accelerated pace. Higher GDP value will do the opposite ensure a stability of the dollar, increasing a demand for it.
The Federal Reserve last month lowered its estimate for the U.S. economy growth in 2008. The GDP is expected to grow at 1.3% instead of the previous forecast 2.5%.
EUR/USD opened at 1.5833 today and is trading at 1.5805 as of 10:26 GMT after reaching as low as 1.5726 earlier today.
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