EUR/USD Faces New Downfall And U.S. GDP Data Released

EUR/USD dropped to its more than two weeks old minimum touching 1.3630 today while the market expected good data on GDP of United States for the seconds quarter of 2007. Breaking below 1.3230 for EUR/USD will mean a big trend breakout, but while it is traded higher a temporal correction should be considered.
U.S. GDP in Q2 2007 rose by 3.4% - a very good increase after 0.6% (revised from 0.7%) in Q1. It is also greater than expected number - 3.2%. Chain deflator for Q2 came out slightly lower than expected - 2.7% against 3.4% expected. Overall these are quite good results for the Q2. If U.S. economy can keep up with this pace in the second half of 2007, then it would add some more power to both stocks and Forex markets.
Today also Michigan Consumer Sentiment Index for July became available - 90.4 against 91.5 - lower than expected but still at a high level, showing a good sign for the U.S. economical health in general.