US GDP Report Misses, but the Buck Survives
Skerdian Meta • 1 min read
The US prelim GDP report for Q4 was just released and it didn´t look good at all. It wasn´t particularly bad because most of the components remained unchanged as in the previous reading, but the expectations were considerably higher and they weren´t met.
The main number was expected at 2.1% but actually it came at 1.9% annualized. Prices also fell from 2.2% to 1.9% while core prices moved a point down to 1.2%.
The sales remained stagnant at 0.9% against 1% expected, while exports fell by 4%, which is not good but it´s a bit better than the 4.3% decline we saw in the previous reading.
The only bright spot on this report remains consumer spending. It grew by 3% from 2.5% previously, but I don´t think that´s enough to make this report look good.
You would have thought that the Dollar would break a leg on this numbers, but not nowadays. That´s good for our forex signal in EUR/USD because it means that the buyers are too scared to dump the Buck in large quantity. Let´s hope sellers take advantage of this soon and start to push down soon.