- July 27, 2018
- Posted by: Trading
- Category: Market Overview
The U.S. economy grew at the strongest pace in nearly four years during Q2, supported by a rebound in consumer spending, exports and firm business investment.
Q2 rose at a seasonally and inflation-adjusted annual rate of +4.1% – a pickup from Q1 growth rate of 2.2%. Compared with the second quarter a year ago, output grew 2.8%.
Note: Market expectations were looking for a 4.4% growth rate.
Today’s report again suggests that the Fed will continue to “gradually” raise short-term interest rates to prevent economic overheating.
EUR/USD for July 27, 2018.
The Fed is widely expected to leave its benchmark rate unchanged at its policy meeting next week (Aug. 1) and increase it by 25 bps in September to 2.25%.
Immediate reaction sees some pressure on the U.S. dollar.
EUR/USD for July 26-27, 2018.
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