US Preliminary GDP | Move in the USD

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
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.

Description

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.

Summary

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%.

This release was also covered in the weekly risk events video. You can watch it here.

P.S. - If you want to learn more about how I trade, check out the link below

Jarratt Davis - Free Forex Course
 

IrwanI

Sergeant Major
Messages
520
You are right Jarrat,US GDP comes out with significant deviation and it move all dollar pair,EUR and GBP hammer badly by dollar,should close in profit or just let it roll until BOJ meeting 15 March,rumors BOJ will add QE program.

Thank You Jarrat
 
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