Within expectations: GDP growth was upgraded to 2.1%, within expectations. Personal consumption is down to 3% instead of 3.2%
Currency markets are stable.
The second estimate of US GDP was expected to show stronger growth of 2% annualized after originally reporting only 1.5% in the first estimate. This is based on a an assessment related to inventories: their drag on the economy was expected to be lighter than had been estimated originally. — more coming —
Towards the release, the US dollar was weaker against most currencies, except the pound. Live coverage:
Data
- US GDP growth was expected to show a revision from 1.5% to 2% Actual 2.1%.
- The goods trade balance carried expectations for a deficit of $61.8 billion. Actual -58.4 billion.
Currencies
No significant changes are recorded:
- EUR/USD traded at 1.0650 after a strong German number.
- GBP/USD was hit hard by doubts cast by Carney and co, trading around 1.5075.
- USD/JPY was at 122.54, partially down on safe haven flows related to the Turkish downing of a Russian plane.
- USD/CAD traded around 1.3355 on recovering oil prices.
- AUD/USD was around 0.7210. RBA governor Stevens offered nothing new.
- NZD/USD was stable around 0.6510.
More: Between Terror and Thanksgiving – MM #77
