Session Recap: The United States is alive! and so the USD

By | Updated July 30, 2014 AAA

FXStreet (San Francisco) - The United States posted its best quarter on quarter growth performance since the Q3 2013 after publishing an upbeat 4.0% in Q2. In addition, Q1 data was revised up to -2.1% from the awful -2.9% previously published.

Then the US Dollar rallied across the board reaching new highs against its major competitors; however the Greenback finished the day off of highs as the Federal Reserve extended taper and it cut it bond buying program by another $10 Bn and Fed's Yellen used a dovish tone.

The EUR/USD declined for second day as the pair fell to 8-month lows at 1.3365 where the pair found buying interest and it returned to 1.3400. Currently, EUR/USD is trading at 1.3395, down 0.10% on the day, having posted a daily high at 1.3416 and low at 1.3367.

"Overall, the downside remains favored, with a break below the daily low exposing 1.3295, November 2013 monthly low," points out Valeria Bednarik from FXStreet in a recent report.

The GBP/USD continues to decline and after posted its tenth negative day of the last eleventh, the pair priced at sub 1.69 levels. Cable is finishing the day at 1.6916, down 0.16% on the day, having posted a daily high at 1.6957 and low at 1.6889.

USD/JPY was the biggest winner of the day as it jumped to test 103.00 level; pair logged its eighth positive day in the last ninth and now it is closing at 102.80, up 0.67% on the day, having posted a daily high at 103.10 and low at 102.04.

Main headlines in the American session

US: ADP Employment Change (Jul) at 218K

US: GDP expanded 4.0% YoY in Q2

Fed cuts another $10 Bn; removes reference to unemployment rate being elevate

Wall Street finishes mixed amid GDP and Fed

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