US Dollar At 4 Months High After GDP

by on July 30, 2014 2:11 pm BST

GDP rose at a 4 percent annualized rate after shrinking 2.1 percent from January through March, Commerce Department figures showed today in Washington.

US Dollar rose to a 4 months high after the US economy grew more than forecast in the second quarter as the Federal Reserve meets to decide the pace of rate increases.

EURUSD Reached an 8 months low as German inflation slowed. Emerging-market currencies declined a fifth day.

USD strengthened for a ninth day versus the JPY as a private report showed companies in the US added 218,000 workers to their payrolls in July, the second most this year.

The July payroll gains reported by ADP Research Institute in Roseland, New Jersey, compared with a median forecast in a survey of economists for a 230,000 advance. Companies added 281,000 the prior month, which was the most this year.

The Federal Open Market Committee ends a two-day meeting today. Interest-rate increases may come “sooner and be more rapid than currently envisioned” if the labor market continues to improve more quickly than anticipated, Fed Chair Janet Yellen told lawmakers this month.