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The dollar rose significantly against the euro , which in the first place was due to the release of weak data on Germany, as well as the better -than-expected report on U.S. GDP .
The Federal Labor Agency said that the number of unemployed in Germany rose by 7,000 in August compared with the previous month . Economists forecast that the unemployment rate will decrease by 5000. The unemployment rate seasonally adjusted remained unchanged at 6.8 percent. The rate of unemployment in line with economists' expectations . According to data released by Destatis, the number of unemployed fell by 40,000 in July compared with the previous month to 2.28 million. At the same time , the unemployment rate fell to 5.3 percent, a few sokartivshis from 5.4 percent in June.
As for the U.S. data , the Commerce Department reported that GDP increased by 2.5 percent in the second quarter , reflecting an upward revision from the initial estimate of 1.7 percent growth . Economists had expected a somewhat less strong upward revision in the GDP growth rate to 2.3 percent. Corporate profits rose 2.6 % in the second quarter compared with the first, which indicates that the company should be in a good position to add jobs and increase investments in the coming months.
The submitted report paints a picture of the economic recovery is gaining momentum, but remains weak by historical standards . Uttered by the value of GDP is the last significant factors that Fed officials will see before they meet on September 17-18 to discuss whether to start down its bond buying program by $ 85 billion a month. The Fed signaled earlier this year that it wanted to reduce these purchases, if the economy continues to show improvement . Many economists believe that they can start doing it as soon as next month.
The Canadian dollar fell against the U.S. currency , as economic data from the U.S. and Canada were given a favorable assessment of the prospects of the U.S. economy and the U.S. dollar strengthened . Note that the data presented today in Canada showed that the current account deficit of the balance of payments in Canada increased in the 2nd quarter and seasonally adjusted totaled 14.58 billion Canadian dollars against 13.45 billion Canadian dollars in the 1st quarter. The data for the 1st quarter were revised . In trade in goods in the 2nd quarter was recorded over a significant deficit , as import growth exceeded export growth . Meanwhile, the deficit of trade in services has also increased .
Meanwhile , another report showed that Canadian producer prices rose in July, slightly above market expectations and in line with the increase in the previous month, mainly due to higher costs for energy and transport. These data are provided by Statistics Canada . According to the agency prices for manufactured goods rose 0.3 % in July , slightly below market expectations of 0.4% growth .
Prices for raw materials used by manufacturers , rose 4.2 % in July , well above the consensus forecast of growth of 1.2% and it is the biggest gain in two years . The price increase was mainly due to 9.7 % increase in the price of crude oil .