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The dollar against the euro has increased markedly, which was associated with the release of better than expected U.S. GDP data. The U.S. economy rose sharply this spring after the reduction in the first quarter, which led to positive growth in the last six months and raised hopes for sustained growth in the second half of 2014. Gross domestic product, the broadest measure of goods and services produced in the economy, increased from a seasonally adjusted annual rate of 4.0% in the second quarter, the Commerce Department said Wednesday. Economists had forecast an increase of 3.1% for the quarter. The rise in stocks and acceleration in consumer spending led to widespread growth and leveled a lot of resistance from increased imports. Growth has replaced the first quarter, when the economy contracted by 2.1%. While this was the worst quarter in the current recovery, this figure reflects an upward revision from the previously estimated 2.9% reduction. The economy grew by about 1% during the first half of 2014. Annual changes published on Wednesday, showed that the economy also expanded by 4% in the second half of 2013, it is the best indicator for the six months to 10 years.
The dollar has appreciated significantly against the pound and the yen amid the U.S. economic recovery, as well as expectations for the outcome of the meeting of the monetary policy by the Federal Reserve later in the session. Official data showed that U.S. gross domestic product grew in the second quarter at an annual rate of 4%. The report also showed that the U.S. economy shrank by 2.9% in the first quarter, as harsh winter weather conditions suppressed economic activity. Report came after data that indicates that the level of employment in the private sector rose by 218 thousand this month, lower than expected increase of 234 thousand in June, the economy added 281 thousand jobs.
Now the focus of the Fed's decision on monetary policy, which will be announced tonight. The Committee is expected to announce more QE minimize the program to $ 10 billion to $ 25 billion. Earlier this month, the Federal Reserve Janet Yellen noted that U.S. interest rates may rise sooner if the recovery in the labor market will continue.
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