U.S. Economic Stats Release: 3% GDP! - Forex News by FX Leaders

U.S. Economic Stats Release: 3% GDP!

Posted Wednesday, August 30, 2017 by
Shain Vernier • 3 min read

It has certainly been a trying week for the U.S. news cycle. Hurricane Harvey and North Korea have been on investors’ minds as we wrap up the North American Summer season. While it is tough to put a hard dollar on Harvey and North Korea’s impact, today brought some encouraging news for the U.S. economy.

Stock MarketMore Positive News From The American Business Sector

U.S. GDP

Earlier this morning a collection of metrics came out pertaining to the U.S. economy. Let’s take a brief look:

Event    Previous   Projected   Actual

ADP Employment Change (Aug)                                 201k                   185k  237k

Core Personal Consumption (QoQ, Q2)                       0.9%                   0.9%                0.9%

GDP Annualized (Q2)                                                    2.6%                   2.7% 3.0%

GDP Price Index (Q2)                                                    1%                       1%                   1%

Personal Consumption Expenditures (QoQ, Q2)           0.3%                   0.3%               0.3%

By far, the story here is 3% GDP growth. Since early 2017, the Trump administration has aspired to 3% GDP as a benchmark. Campaign rhetoric of 2016 lauded 6% GDP as the ultimate goal, but 3% will be accepted as a solid step in the right direction.

If these were normal times Twitter would have lit up with excitement over GDP from the White House. Today, tweets about North Korea and Harvey were on display.

U.S. Session Open

In any other news cycle, 3% GDP would be a huge deal spiking U.S. equities higher on the open. However, today’s cash open has been muted, with the DJIA and S&P 500 slightly off. The USD has shown some strength against the EUR and CAD.

One cannot overstate that the timing of this positive release is a bit unfortunate for bulls in U.S. equities. As the continued impact of geopolitical uncertainty and natural disaster is measured upon the American markets, it is important to stay vigilant.

Overview: The DJIA and S&P 500 are in a position to regain some of the recent losses in coming sessions. I will be monitoring the U.S. indices closely looking to get in on the eventual push higher.

Timing the markets can be tricky. For help trading market fundamentals stay tuned to FX Leaders for up-to-date analysis of prominent U.S. and international markets.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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