The first release of Q3 GDP surprised to the upside with an annual growth rate of 2.8%. It was expected to show an annual growth rate of 2% after enjoying a growth rate of 2.5% in the second quarter. Two more revisions are planned, and they usually tend be quite different from the original release. Weekly jobless claims, released at the same time, were expected to show a small drop to 336K from 340K (before revisions). Jobless claims came out at 336K, as expected.
The ECB stole the show earlier with a shocking rate cut. EUR/USD plunged 150 pips before stabilizing and traded around 1.3370 before the release. It then fell towards 1.33. GBP/USD was around 1.6060 and fell towards 1.60. and USD/JPY around 98.70 and now at 99.30.
One of the reasons for stronger growth was the fact that export growth exceeded import growth.
The all-important US data is released just as ECB president Mario Draghi begins his press conference.