Categories: Market Overview

US GDP contracted more than expected, but no recession is in sight

A revised estimate for the first quarter showed that US GDP contracted at an annual rate of 1.5% (previously reported at -1.4% and expected -1.3%). A major factor in the decline was a jump in net imports, a situation that the sharply appreciating Dollar in recent weeks can mitigate.

However, it is worth noting that final consumer demand has continued its recovery, indicating a solid foundation in the economy. At least for the time being.

Strong domestic consumption is a positive signal for the Dollar. It allows the Fed to continue its fight against inflation and leads interest rates to be higher than in Europe.

US GDP has a high chance of returning to growth in the current quarter by avoiding a formal recession (two consecutive quarters of contraction).

On the other hand, today’s data is hardly ideal for the stock market as it suggests better retail conditions than risky growth sectors.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

Share
Published by
The FxPro Analyst Team
Tags: GDPusd

Recent Posts

GBPUSD Wave Analysis 22 November 2024

- GBPUSD broke support zone - Likely to fall to support level 1.2465 GBPUSD currency…

4 hours ago

USDCHF Wave Analysis 22 November 2024

- USDCHF broke resistance zone - Likely to rise to resistance level 0.9000 USDCHF currency…

4 hours ago

Downbeat PMIs Cemented EURUSD’s Fall

The decline in EURUSD was driven by weak PMI figures, with France and Germany both…

5 hours ago

Gold hits new highs in euro

Gold has reached record high in euro above 2600, and growing fast in dollar terms…

9 hours ago

Crypto market buzzing in anticipation of regulatory change

The crypto market is booming as the anticipation of regulatory changes grows. Bitcoin nears $100K,…

11 hours ago

GBPCAD Wave Analysis 21 November 2024

- GBPCAD broke support zone - Likely to fall to support level 1.7500 GBPCAD currency…

1 day ago

This website uses cookies