U.S. Economy Grew 4.1% In Q2

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.

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.

EUR/USD for July 26-27, 2018.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

error: Content is protected !!