Forex broker – U.S GDP news send euro up on Friday session

Forex BrokerForex broker activity is currently dominated by the latest and very expected U.S commerce department indicators on the nation’s gross domestic product behavior (GDP).
Considered to be the broadest measure of the economy, American GDP grew a sluggish 1,5 percent between April and June, compared to the 2 percent growth during the prior three months, and the 4,1 percent in the fourth quarter of 2011.
The slowdown came as consumers spent at their slowest pace in a year, local governments cut spending, factories received fewer orders and exports were hit by a global slowdown and a stronger dollar.
The news appears as the number of jobs created each month has also fallen sharply and provides insight on both the FED’s potential efforts to pump more money into the economy and the possible effect on the development of the 2012 presidential election, which has the economy as the key issue.
“The economy has effectively landed—nothing to suggest further overall weakening growth, and nothing to suggest a rebound either,” says Steve Blitz, ITG Investment Research’s chief economist.
The EUR/USD pair, which began the week in the 1.2270 mark, experienced a slight comeback and is now on a 3-week high, resting on the 1.2360 line. The safe-haven U.S dollar fell against most of its main currency rivals on Thursday. Forex broker analysts still forecast a quiet market, between the U.S 2Q GDP figures and President of the European Central Bank Mario Draghi`s latest comments.
Indeed, Draghi said on Thursday the Euro was “irreversible” and promised to do everything within his power to save it.
“Within our mandate, the ECB is ready to do whatever it takes to preserve the Euro. And believe me, it will be enough”, said Draghi.
Draghi`s comments appeared to have calmed the waters, at least temporarily, as expected by the forex broker community. The Euro made some recovery attempts and also gained against other currencies. Interest rates on Spanish 10-year bonds, which had peaked at 7,75 percent this week dropped below 7 percent, while Italy’s 10-year bond yield slipped below 6 percent.
“These are potentially very significant remarks from the ECB president”, says Nick Parsons, analyst at National Australia Bank. “Until now we’ve had a none too subtle public row between the inflationary hardliners in the Bundesbank and the ECB”.
Commodity-wise, forex broker reports had the crude oil price increase by over $2 a barrel yesterday. A bearish dollar made crude oil more affordable for international buyers, resulting in the upward correction. Oil peaked at $90,43 before turning downward and stabilizing at the $90,10 level.
Still, crude traders will have to monitor any euro-debt indicator, as signs of crisis spreading to all-mighty Germany might eclipse any positive outlook.