Temporary Boost from Fiscal Stimulus Package Accounts for Growth in 2008:Q2 Real gross domestic product of the U.S. economy grew at an annual rate of 1.9% in the second quarter, following a revised 0.9% increase in the first quarter. This report also contained revisions of GDP estimates going back to the first quarter of 2005. Real GDP grew at a slightly slower pace during the period of revision (2005-2007, see chart 1). The most noteworthy aspect was the contraction in real GDP growth in the

Greenback Little Changed Despite Weak Data The dollar was little changed after an initial drop as reports showed the US economy grew less than forecast in Q2 and initial jobless claims rose last week to a 5-year high. The yen and Swiss franc were modestly higher as US stocks fell. The USD/CAD was little changed, unable to penetrate the 1.03 resistance for a third day. The GBP/USD rose modestly. The AUD/USD fell after Australian retail sales fell the most in six years. The EUR/USD initially

7/31/2008 3:03 PM: EUR/$..1.5594 $/JPY..107.88 GBP/$..1.9826 $/CHF..1.0476 AUD/$..0.9417 $/CAD..1.0231 FX Awaits US Jobs The dollar is firmer against the majors by the New York afternoon following sharp swings in the morning to hover near similar levels from the previous session. The greenback sold off heavily across the board following a sharply higher than expected weekly jobless claims reading, which surged to 448k from 406k in the previous week due to “special factors”, prompting the

Despite weaker than expected economic data and a stock market rout the buck held in pretty well against the majors in the NY session.  The advance read of US 2Q GDP came in below market expectations at 1.9% from 0.9% in 1Q.  The weakness in the automotive sector contributed heavily to the disappointment and excluding autos GDP would have been a very healthy 3.1% for the quarter. Initial jobless claims were a worse than anticipated 448K after a 404K print the prior week and this took

EURO The euro reversed recent losses vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.5700 figure and was supported around the $1.5570 level.  The common currency gave back some intraday gains after the release of U.S. Q2 GDP data that saw the economy expand at an annualized 1.9% pace, up from the downwardly revised 0.9% pace in Q1.  The Q2 pace of growth represented the fastest since Q3 2007.  Q2 personal consumption expenditures were up

EURO The euro reversed recent losses vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.5700 figure and was supported around the $1.5570 level.  The common currency gave back some intraday gains after the release of U.S. Q2 GDP data that saw the economy expand at an annualized 1.9% pace, up from the downwardly revised 0.9% pace in Q1.  The Q2 pace of growth represented the fastest since Q3 2007.  Q2 personal consumption expenditures were up

You talk too much, you worry me to death, you talk too much, you even worry my pet. You just talk too much. Leave it to Goldman Sachs to talk up their position at a key technical moment in the world oil market. they jumped on the report from the Master Card advisors that showed that gasoline demand hit the highest level of the year. You see according to Goldman what we have seen lately is not demand destruction but demand restraint and oil will go back up to the highs before the end of the

- Markets plunged in pre-market trading this morning after the preliminary Q2 GDP reading came in short of expectations and the Q407 number was revised to -0.2% from +0.6%, providing a strong whiff of the “R word,” while weekly jobless claims hit their highest levels since April 2003. After some initial strengthening on the weaker dollar, crude has dropped $2 and is headed lower once again. Bristol Myers’ offer for ImClone and strong healthcare and tech reports have helped the Nasdaq to

(Chart courtesy of FX Solutions’ FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; 200-period simple moving average in light blue.) 7/31/2008 – GBP/USD – Price on the GBP/USD (a 4-hour chart of which is shown) shot up on Thursday morning to hit a significant resistance point that combines the top of a new short-term downtrend channel (in red) and the underside of the previous short-term uptrend channel (in green) which price broke