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Forex: GDP and Unemployment Figures Weaken the Dollar

30/07/2021
Categories: Economy/Forex

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As the week comes to a close, the dollar finds itself weakened by the GDP and unemployment figures. The greenback appears weak against a basket of currencies.

The day's figures foiled all predictions and largely disappointed. The dollar fell slightly against most European currencies. It gave up 0.35% against the Euro at 1.1885, -0.3% against the Yen at 109.36 or against the Swiss Franc at 0.908. The greenback appears even weaker against the British pound: -0.5% to 1.3980. It suffered a more pronounced decline (-0.7%) against the Canadian dollar to 1.2440 and dropped -0.85% against the New Zealand dollar to 0.7000. US GDP grew by 6.5% in the second quarter of 2021 at an annualized rate, according to the Commerce Department's first-ever estimate: this is slightly better than the 6.4% in the first quarter but well below the +8.5% expected by the consensus. Weekly jobless claims fell by -20,000 to 400,000, again, a smaller-than-expected improvement. The dollar is nearing a low against the euro, around 1.1900.

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