Signs of US Growth Propel Dollar Higher

  August 30th, 2013 at 1:15, Vladimir Vyun

Mix of US dollar billsThe US dollar jumped as signs of economic growth in the United States fueled speculations about possible quantitative easing tampering by the Federal Reserve in September.

US economic growth accelerated from 1.1 percent in the first quarter of this year to 2.7 percent in the second quarter, according to the preliminary estimate. It was above the advance estimate of 1.7 percent and the median forecast of 2.2 percent. Unemployment claims decreased from 337,000 to 331,000 last week, in line with expectations.

Positive data increases probability of stimulus reduction as soon as the next month. The situation in Syria continues to plague the market, adding to the strength of the greenback.

EUR/USD traded at 1.3242 as of 1:11 GMT today after sinking from 1.3337 to 1.3239 yesterday. GBP/USD was near 1.5512 after the fall from 1.5523 to 1.5502. USD/JPY traded at about 98.26 following the advance from 97.62 to 98.33.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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