Even though softer first quarter GDP growth drove the US dollar to a fresh record low against the euro, the greenback ended up staging a very impressive intraday reversal.
In the foreign exchange market, there are times when politics can trump economics. Even though we did not have any breaking developments, the lack of meaningful US economic data turned the market’s focus today to the potential for political change.
Tuesday’s very ugly existing homes sales numbers have once again fueled speculation that weakness in the housing sector will spill over into the overall US economy, tipping it into a recession.
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