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8/28/2008 2:50 PM: EUR/$..1.4698 $/JPY..109.48 GBP/$..1.8280 $/CHF..1.0988 AUD/$..0.8611 $/CAD..1.0510

Q2 GDP Props USD by Korman Tam


The dollar gained ground against the majors in the Thursday session, rising to its highest level in two years against the pound and edging toward the 1.47-level versus the euro. The greenback benefited from a combination of upbeat US economic data and weaker oil prices, with crude easing by almost $3 to $115.35 per barrel.

The reports released earlier today revealed stronger than expected growth in the second quarter, with preliminary GDP in Q2 at 3.3%, sharply higher than the previous reading of 1.9%. A closer breakdown of the report revealed a surge in exports, up 13.2% in Q2 with a larger decline in imports, down 7.6%. The growth figures bode well for the dollar, particularly in contrast with sluggish GDP results from the Eurozone, Japan and the UK.

In the Friday session, traders will look ahead to several key reports from the US, including PCE, personal consumption, personal income, Chicago PMI and the University of Michigan consumer sentiment survey. Chicago PMI in August is expected to slip to the key 50-level, down from 50.8 from July.
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