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Gross Domestic Product grew at an annual pace of 1.7% in the second quarter of 2012 according to the first revision of GDP for Q2. The initial estimate was 1.5% and the consensus was for a revision to 1.7%.

EUR/USD was trading steadily at around 1.2550 and is now ticking higher after an initial drop. USD/JPY traded around 78.60 prior to the publication and is now rising after a muted initial reaction. GBP/USD is now on the rise.

The GDP price index remained unchanged at 1.6%, as expected.

Later on, US pending home sales are expected to rise by 1.1%. Update: Pending home sales exceeded expectations and rose by 2.4% – another positive sign for the housing sector.

Markets are generally tense towards Ben Bernanke’s speech on Friday at Jackson Hole.

All in all, the US economy continues growing at a slow pace: probably not enough for QE3. Some participants expect Bernanke to hint about QE3, but there are many reasons why he may disappoint.