News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Could #APAC stocks (such as the #ASX200 and #HangSeng) follow the #DowJones lower on Tuesday after US fiscal stimulus bets faded? Check out today's APAC stocks briefing here - https://www.dailyfx.com/forex/market_alert/2020/10/20/Dow-Jones-Sinks-Hang-Seng-May-Follow-ASX-200-Could-Rise-on-Dovish-RBA.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/2Mn2x2lndw
  • Join @DanielGMoss's #Webinar at 10:00 PM ET/2:00 AM GMT for his weekly coverage of trading prep for $AUDUSD in the week ahead. Register here: https://t.co/wi1qabrtHJ https://t.co/pkiysDzFrD
  • RBA Minutes: Further easing would reduce financial stability risks -BBG $AUDUSD #RBA
  • RBA Minutes: Further easing would gain traction as the economy opens, members considered effect of lower rates on confidence and savers -BBG #RBA $AUDUSD
  • RBA Minutes: Fiscal, monetary support will be needed for some time. Agreed to place more weight on actual over forecast CPI -BBG #RBA $AUDUSD
  • Last week’s British Pound price reversal keeps the focus on a break of the recent range for guidance with the broader risk still lower below the yearly open. Get your $GBPUSD technical analysis from @MBForex here:https://t.co/znI4iT8skY https://t.co/QqGOzRwjmW
  • USD/JPY and GBP/JPY may reverse lower in the near-term as both exchange rates fail to breach key resistance. CAD/JPY rates eyeing a retest of its post-crisis high. Get your market update from @DanielGMoss here:https://t.co/NptWy89cTa https://t.co/PYrMMwaCXg
  • Both $AUDUSD and $NZDUSD are slipping in early Tuesday APAC trade following dovish remarks from the #RBA ... https://t.co/nvOjnM8z8h ...and #RBNZ respectively: https://t.co/tDlVxzO68h https://t.co/w3y9zDlz6i
  • RBA's Kent: Notes still room to compress short-term rates -BBG $AUDUSD #RBA
  • Read your daily election update⬇️ https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/10/19/AUDUSD-Downtrend-to-Accelerate-Election-Betting-Odds-Defying-Polls.html
US Dollar Crushed as Q2'16 GDP Disappoints Significantly

US Dollar Crushed as Q2'16 GDP Disappoints Significantly

2016-07-29 13:05:00
Christopher Vecchio, CFA, Omar Habib,
Share:

Talking Points:

- Fed rate expectations slip back after dismal Q2'16 US GDP reading.

- USDOLLAR Index pacing for worst day since before Brexit.

-See the DailyFX Economic Calendar for next week’s US data.

Q2’16 US GDP came in at +1.2% despite expectations of +2.5%, and only slightly faster than last quarter’s GDP growth of 0.8%. Q1 GDP was revised lower to 0.8% from 1.1%. Forecasts from the Atlanta Fed’s GDPNow and New York Fed’s Nowcast also expected +1.8-2.2%. The trend over the last few years has been a slow first quarter and a strong spike in the second, but this is clearly a miss. Last year went from +0.6% GDP growth in Q1 to +3.9% in Q2.

Personal Consumption data was just below expectations at +4.2% versus expectations of +4.4% but still significantly stronger than last quarter, which was +1.6%. Inflation data was at +1.7%, meeting expectations, but below last quarter’s data which was revised up to +2.1%.

Here’s the data dragging down the US Dollar this morning:

- USD GDP Annualized (2Q A): 1.2% versus 2.5% expected, from 0.8%.

- USD Core PCE(QoQ) (2Q A): 1.7% versus 1.7% expected, from 2.1%.

- USD Personal Consumption (2Q A): 4.2% versus 4.4% expected, from 1.6%.

See the DailyFX economic calendar for Friday, July 29, 2016

Chart 1: EUR/USD 1-minute Chart: July 29, 2016 Intraday

US Dollar Crushed as Q2'16 GDP Disappoints Significantly

In an immediate, and somewhat muted, response to the data, the US Dollar fell against the Euro, as the EUR/USD rose to $1.1139 from $1.1105, and as high as $1.1143 at the time this report was written. Keep in mind that Euro-area stress tests will be coming out later today, so volatility may continue within this pair. With FX volatility edging higher again, it’s the right time to review risk management principles to protect your capital.

--- Written by Christopher Vecchio, Currency Strategist and Omar Habib, DailyFX Research

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES