The U.S. dollar weakened today against the Great Britain pound and the Japanese yen as the economic growth in the first quarter of this year were lower than expected; the concerns about the European debt crisis allowed the U.S. currency to rise versus the euro before returning to the opening level.
The U.S. gross domestic product rose by 2.7 percent in the first quarter of this year, compared to 5.6 percent in the fourth quarter of 2009. The median forecast of the analysts was the 3.0% growth. Some experts were already suggesting that the fast U.S. economic recovery is just an illusion, the notion that was supported by today’s report.
On the positive side, the consumer confidence seems to improve as University of Michigan final index suggested. The good consumer outlook allowed the greenback to strengthen versus the 16-nation European currency as there is little confidence in the euro remained.
GBP/USD traded at 1.4992 as of 16:29 GMT today after opening at 1.4934. USD/JPY fell to 89.35 from the opening level 89.58. EUR/USD traded near 1.2342 after it fell as low as 1.2253.
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