Better than expected growth in the US: 1.4% in the final read for Q1 2017. This is an annualized figure. Quarter over quarter it is around 0.35%. The upwards revision is mostly due to an upgrade in personal consumption: 1.1% in the final read. The GDP price index was revised down: 1.9% against 2.2%. Also, Core PCE is lower: 2%.
The US dollar ticks up across the board but the moves are minimal.
- EUR/USD slips under 1.14 but does not go too far. It has halted at high resistance.
- USD/JPY attempted to move above 112.70 but retreated. The yen is the big loser of the week.
- GBP/USD trades steadily around 1.2964. A move to 1.30 was rejected. Carney’s hawkishness is overstretched.
- USD/CAD is around 1.3030, still not attacking 1.30. The Canadian dollar had a great week as oil prices are rising.
- AUD/USD is around 0.7665. The pair is struggling.
US jobless claims came out at 244K, very similar to last week’s 242K. Continuing claims remain under 2 million.
The third and final read of US GDP was expected to confirm a growth rate of 1.2% annualized in Q1 2017. In the second read, the number was upgraded from an even worse 0.7% to its current 1.2%. Q2 will probably be better, but not too much.
The US dollar was rising against the Japanese yen but on the back foot against all the rest.
More: EUR/USD: 3 Reasons Why Gains To Be Capped At 1.15 N-Term – Credit Suisse
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