No big surprises in the US GDP read: a small upgrade to 3.1%. The GDP deflator remains at 1%. Inventories are up 1$. Personal consumption remains at 3.3% prices stand at 0.9%. Corporate profits are lower. Both imports and exports are slightly lower.
Jobless claims are up to 272K, within expectations.
Currencies do not react to wildly, to put it lightly.
The third and final estimate of GDP growth for Q2 was projected to confirm the 3% growth rate that was reported in the second read. The first read stood at 2.6%. All in all, the second quarter was positive and served as a bounce back. The US economy grew by only 1.4% in Q1 and 1.6% during 2016.
The GDP deflator was expected to remain unchanged at 1% and core PCE to be confirmed at 0.9%.
US weekly jobless claims were expected to rise to 270K from 259K last week. Claims were stable for quite a long time, but the recent hurricanes skewed the data.
The US dollar was taking a breather from its rally. Trump’s tax plan is among the reasons for the rally in the greenback.
