US economic growth

On Friday the Swiss franc surged against majors as traders sought for safe haven currencies after the weaker than expected US economic growth report.

According to the data by the US Commerce Department the US economy grew at a slower pace than expected in the second quarter of 2011. U.S. gross domestic product grew at a 1.3 percent annual rate for the second quarter of 2011. Most economists had predicted a somewhat more robust, 1.9 percent growth in GDP.

On Wednesday the US Federal Reserve cut its forecast for the economic growth while it didn’t suggest any further monetary easing saying the recovery would eventually pick up through 2012.

Ben Bernanke said that while such factors as high commodity prices which impact the economy should be fleeting, still the recovery would feature some weakness.

"Part of the slowdown is temporary and part of it may be longer lasting," Bernanke told a news conference after a two-day Fed policy meeting.

The yen moved up against majors in early New York session as a slower-than expected U.S. economic growth in the first quarter propelled traders to seek safe-haven assets.

The yen is presently trading higher at 81.55 against the US dollar, 85.79 versus the Canadian dollar, 120.80 against the euro, 93.45 against the Swiss franc, 88.87 against the Australian dollar, 135.85 versus the pound and 65.35 against the NZ dollar.