US Preliminary GDP will be released today 1:30pm GMT. A significant deviation has the potential to cause a move in the USD. A beat may see sustained strength in USD with downside in bearish pairs like Cable, whereas a miss may see a selloff in USD across the board.
Gross Domestic Product shows the annualised change in the value of all goods and services produced by the economy. It’s the broadest measure of economic activity and the primary gauge of the economy’s health. Preliminary GDP is the second estimate of three GDP readings from the US. There are 3 versions of GDP released a month apart – Advanced, Preliminary, and Final.
The Fed remain data dependent with a keen eye on inflation heading into the March meeting. Next to inflation data, the Fed are also watching developments in the labour market and economic growth. GDP is the best indicator for economic growth and this release is important for gauging the strength of the US recovery.
This second estimate GDP is expected to be revised down from 0.7% at the Advance reading, to 0.4%.
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Source:: US Preliminary GDP | Move in the USD