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The US economy is expected to contract by 16.3% in the second quarter before expanding by 1.5% in the third quarter, the Federal Reserve Bank of New York’s latest Nowcasting Report showed on Friday. 

“News from this week’s data releases increased the nowcast for 2020:Q2 by 2.7 percentage points and increased the nowcast for 2020:Q3 by 3.4 percentage points,” the NY Fed’s weekly publication read. “Positive surprises from manufacturing and personal consumption data drove most of the increase.”

Market reaction

The US Dollar Index largely ignored this report and was last seen gaining 0.25% on a daily basis at 97.62.