FXstreet.com (Barcelona) - US stock market is rising for the first time this week as financials climbed up on Fox-Pitt analysts expect non-performing assets will peak at the end of 2009 and oil has rebounded above $50.0 a barrel.

Wall Street is posting gains despite US Q1 GDP has posted a deeper decline than expected by market. The US annualized Gross Domestic Product has fallen 6.1% in the first quarter of the year, well below of 5.0% decreases expected bu market but better than 6.3% decreases posted in the previous quarter. GDP price index rises 2.9% in the first quarter from 0.5% posted in the last quarter of 2008. Expectations were 1.8% increases.

Dow jones is rising 1.93%, trading above the 8.000 key level, S&P 500 is climbing up 2.00% and Nasdaq posts 2.25% increases today. On the European side, EuroStoxx 50 is closing 2.35% up, CAC 40 is 2.10% increases, DAX rises 2.13%, AEX advances 1.45% and IBEX 35 is posting 2.57% increases so far today.

GBP/USD has risen 1.00% so far today to test the 1.4800 level, EURUSD advances 1.20% after breaking 1.3270 resistance, USD/CHF is trading below 1.1350 again after falling 0.85% so far today and USD/JPY trades above 97.00, a 0.50% increases from today's opening price.

According to Kathy Lien, Director of Currency Research at GFT, the dollar's reaction to the GDP growth may be limited ahead of FOMC this afternoon: The market expects the Federal Reserve to leave their FOMC statement largely unchanged which includes leaving their growth forecasts and purchase programs intact. This is very important because any changes will trigger a reaction in the currency market. If the Fed cuts their growth forecasts or expands their asset purchase programs, it would be dollar negative. If they leave their forecasts unchanged, which is what we expect, it could actually accelerate the gains in the U.S. dollar. It is very unlikely that the central bank will increase the size of their asset purchase program given the recent improvements in the financial markets including the rally in U.S. equities and the narrowing of the LIBOR and Overnight Swap Index (OIS) spread.

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