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US Final Q1 GDP: -0.2% as expected

No surprises in the final read: a contraction of 0.2% (annualized)  in the US economy output. The  deflator is at -0.1% and core PCE at +0.8%. It is important to remember that we are already towards the end of Q2, so this is old news. In addition,  significant revisions are expected in late July.

The dollar is stable after the publication, with minor gains against some currencies.

Among the details, personal consumption was upgraded to 2.1% from 1.9% previously reported. Consumption  is critical to the US economy. That is a positive.  However, another contribution to the better read came from inventories. And what comes up must come down in  inventories:  replenishing is followed by depletion.

The third and officially the final read for Q1 GDP was expected to show an annualized contraction of 0.2%, better than -0.7% seen in the second read  but still worse than a growth rate of 0.2% in the first read.

Before the deal, the dollar held its higher ground against its peers.

The GDP deflation was  predicted to drop by 0.1%, no change from the previous read. Core PCE carried expectations of +0.8%, also unchanged.

More: 5 most predictable pairs – Q3 2015


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.