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EUR/USD: Trading the Preliminary U.S. 1Q GDP Report
Economic activity in the U.S. is expected to increase an annualized 2.2% in the first-quarter amid an initial forecasts for a 1.8% expansion, and the upward revision in GDP could spur a bullish reaction in the U.S. dollar as the outlook for future growth improves. As the Federal Reserve plans to conclude QE2 in June, the central bank may show an increased willingness to start normalizing monetary policy later this year, and Chairman Ben Bernanke may soften his dovish tone for monetary policy as the committee maintains its dual mandate to ensure price stability while fostering full-employment. However, the Fed may ... (full story)