US GDP 0.7% but good internals – USD stronger

0

The US economy grew at a weak annualized growth rate at 0.7%, just below expectations, but perhaps it could have been worse after yesterday’s data. Core PCE is 1.2% as expected while the wide PCE is a miss with only 0.1%. The GDP deflator came out at 0.8% as predicted.

Markets aren’t moving that much in the immediate aftermath.

The internals of the GDP report are not so bad: inventories weigh.and they could be replenished in Q1 2016. Personal consumption is 2.2% against 1.8%.

Here is the EUR/USD chart:

EURUSD GDP reaction

The first release of US GDP for Q4 2015 was expected (see full EUR/USD preview) to show a poor annualized growth rate of 0.8%, below 2% seen in Q3. The Fed also hinted about slow growth and recent figures were terrible.

— more coming

Follow the live coverage here:

(If you can not see or type in the chat box please go here)

Get the 5 most predictable currency pairs

About Author

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 the 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.

Comments are closed.