The USD lost ground Friday after the government said the world's largest economy shrank less than economists expected, while still indicating worrying trends in consumer spending. Despite the fact that the Gross Domestic Product (GDP) contracted 1% in the 2nd quarter, better than the predictions, traders combed through revisions to past data and components of the report and kept an eye on equities since the greenback has been so closely tried to indications of investors' risk appetite.
The U.S dollar fell further after the Chicago purchasing managers index rose to 43.4% in July from 39.9% in June, according to a survey released Friday. While still indicating overall business contraction, the Chicago PMI is considered a leading indicator to the national Institute for Supply Management manufacturers' survey to be released on Monday. Overall, the market's sentiment for the greenback remains negative. The Chicago PMI index actually came in better than expected, and the details were pretty positive across the board. The overall string of constructive economic data will likely carry into at least the early part of next week, and the greenback is trading near the lows of the day, analysts said.
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