US GDP data for the second quarter

• Core  durable goods orders (m / m) (Aug), fact 0.1%, forecast 0.4%.
• Durable goods orders (m / m) (Aug), fact 4.5%, forecast 1.9%.
• GDP (q/q) (Q2), fact 4.2%,  forecast  4.2%
• The GDP deflator (q/q) (Q2), fact 3.3%,  forecast  3.0%.
• Goods trade balance  (Aug), fact  -75.83B,  forecast  -70.60B.
• Initial jobless claims,  fact 214K,  forecast 208K.

 The US data were very mixed, but the data on US GDP turned out to be very positive, and it supported the US currency. The GDP data fully coincided with the forecast and remained at the level of 4.2%. Positive growth was caused by data on the US GDP deflator, which significantly accelerated this year and reached a maximum value since the beginning of 2009.

Fig. 1. US GDP Chart

Against the background of positive data on US GDP, the market ignored the growth of the initial jobless claims and the reduction of  durable goods orders, that remain within normal limits anyway.

This report has strengthened optimism in the US currency and allowed the US dollar index to break the downtrend in recent months, breaking through resistance at 94.50-60, thus opening the way to resistance levels: 94.80 and 95.00.

Fig. 2.The US dollar index chart. The current price is 94.70 (10-year government bonds yield is a blue line)

Read also: “Indicator Momentum – an excellent assistant in trade”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

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