Despite the fact that the US GDP data for the second quarter coincided with the forecasts and the growth rate of the US economy accelerated from 2.0% to 2.2%, the US dollar did not provide help due to varying major factors. Apparently, investors are already preparing, as the data for the third and fourth quarters will worsen. This is indicated by the dynamics of consumer activity in the recent months. Also, take note the damages caused by recent hurricanes to Texas and Florida for this will inevitably affect the pace of economic growth. In turn, the representatives of the Fed who spoke yesterday did not mention anything new, they did not even touch the issue of raising the refinancing rate. And, this also embarrassed investors to some extent. At the same time, it slightly reduce the overbought dollar.
There is a lot of interesting news scheduled for today. First, the UK publishes GDP data which may show that economic growth has slowed from 2.0% to 1.7%. Also, the number of approved applications for mortgages is projected to decrease from 68,689 to 68,000. These events clearly do not provide optimism towards the British pound. In Europe, preliminary inflation data came out, which is expected to accelerate from 1.5% to 1.6%, in order for the single European currency to have enough reasons for growth. The growth of the euro will be further supported by the data on personal incomes and expenditures in the US, which is expected to grow by 0.2% and 0.1%, respectively. If forecasts are confirmed, it shows that incomes are increasing faster than expenses for a while. This also indicates that consumer activity may continue to decline.
The euro-dollar pair would likely increase to 1.1835.
The pound-dollar pair will perform somewhat differently, as it will drop to level 1.3350 initially, followed by a reversal to 1.3400 mark.
