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The US economy grew at an annual rate of 1.5% in Q2, according to the first GDP release (the most important one). Expectations stood on a growth rate of 1.5%. The US is growing, but at a slow pace, once again.

EUR/USD retreats from highs on the news. The pair already challenged the tough 1.2330 before the publication, and is now descending towards 1.23. USD/JPY is on the rise, in a narrow range.

The accompanying GDP Price Index rose by a rate of 1.6%, also within expectations, according to the first estimate.

According to the final read for Q1, the US economy grew by 1.9% – quite weak. This final read wasn’t that final: it was now revised to a growth rate of 2%.

Also previous data was revised: GDP growth in 2009 was revised up from -3.5% to -3.1%, 2010 was revised from +3% to +2.4% and 2011 was revised from +1.7% to +1.8%.

The weak growth number continues to be favorable for the dollar.

The euro got a boost earlier from a report that the ECB will take a loss on Greek debt. Update: EUR/USD loses 1.23.

For more, see the EUR/USD forecast.