USD/JPY Rallies as US GDP Rebounds Strongly in the Second-Quarter
- US Second-Quarter GDP 4.0% vs 3.0% expected; 2.9% prior
- US Dollar Rises Against its Major Peers
- US Dollar: 2Q US GDP Data May Outshine FOMC in Driving Volatility
US economic output rebounded sharply in the second quarter, boosting the US Dollar higher against its major peers. US 2Q GDP saw an annualized growth rate of 4.0 percent, beating estimates calling for a print of 3.0 percent. The outcome is a sharp contrast to the 2.9 percent drop in the prior period, and may suggest the US economic recovery is underway.
DailyFX Strategist Ilya Spivak says that there is supportive news-flow arguing for stimulus to be withdrawn relatively sooner than the second half of 2015 – seemingly the markets’ baseline scenario – is likely to boost the US Dollar and may force a selloff across sentiment-sensitive assets. Today’s strong outcome may support the argument, noted by the strong initial reaction of the US Dollar.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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