Euro Boosted as Dollar Falls

In London trading the dollar was weaker, hitting 19 day lows versus the euro following a train of dips reflecting weak US second-quarter GDP data on Friday, July 28th. As strong euro zone information coming out on Monday morning helped to support the euro, US GDP numbers showed annual growth that fell well below expectations at 2.5%. This fact put doubt in the minds of traders over whether US interest rates will rise again. The market, now attaching only a 24% chance of the US interest rate hike on August 8 and only a 46% chance that the rates are going to move higher at all. There are also other events, including worries over whether the escalating situations in the Middle East could have some damaging effect on the dollar.