Prospects of a coming recession were pushed further into the distance as GDP was revised to 2.0%, up from 1.3% prior.
- The
EURUSD retreated on Thursday and early Friday, paring back early-June gains, after data showed the US economy and labor market surged way above analyst estimates. US gross domestic product for the first quarter arrived at a full 2.0% year-over-year, eclipsing expectations for 1.4%. The figure was revised from 1.3% measured in May. - In that context, the euro slipped under $1.09, hitting a session low of $1.0860 early on Friday. Prior to the news release, the EUR/USD rate peaked above $1.10 for the first time since early May. The dollar advanced against other major rivals, including the Japanese yen and the British pound.
- The optimistic GDP report fueled hopes that a recession is not actually lurking around the corner. Economic resilience was also seen in last week’s jobless claims. People who filed for unemployment benefits for the period arrived at 239,000, running below expectations for 266,000.
