Daily Brief, Nov 27: Economic Events Outlook – Who’s Ready for US GDP?
Good morning, traders.
A day before, the drop in the US consumer confidence weighed heavily on the US Dollar as it was the highlighted macroeconomic data on Tuesday. The decreased CB Consumer confidence weighed on US Dollar and had a reverse reaction on yellow metal prices; as a result, the bullish trend for Gold started after dropping for four consecutive days.
The Richmond Manufacturing Index from the United States was decreased to -1 from the expectations of 6 and did not support the US Dollar. The closely watched CB Consumer Confidence at 20:00 GMT also came in against the US dollar when it decreased to 125.5 against the expectations of 126.9. Today, most of the focus is likely to stay on the US GDP figures.
Watchlist – Economic Events to Trade Today
Core Durable Goods Orders – 13:30 GMT
It’s an economic indicator that measures the change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. It’s released by Census Bureau. Orders are expected to gain by 0.2%, which is higher than the -0.4% drop in October 2019.
Earlier this year, the core durable goods orders figure has been crappy, always staying below 0.2% growth. But since the second quarter, the durable goods orders have improved. Today’s improved data will support the Fed’s hawkish policy stance and may boost the demand for the US dollar in the market.
USD – Prelim GDP q/q – 13:30 GMT
The Bureau of Economic Analysis will be releasing US Prelim GDP figures. According to the initial release, the US economy has outperformed its rivals in the second quarter by expanding at a yearly rate of 2.1%.
As you see in the chart, the US economy grew by an annualized rate of 2.1% in the second quarter of 2019, surpassing economists’ forecasts of 1.8% and following a 3.1% growth in the previous three-month period, as the advance estimate showed.
Household consumption and government spending grew at faster rates, while a drop in exports and a poorer inventory build had a negative impact on growth. In the United States, the GDP growth rate averaged 3.21% from 1947 until 2019, touching an all-time high of 16.70% in the first quarter of 1950 and a record low of -10% in the first quarter of 1958.
For now, economists are expecting no change in GDP data as it’s likely to stay at 1.7% in November vs. 1.7% beforehand.
The ISM-Chicago, Inc releases the PMI report that shows results from a survey of around 200 purchasing managers in Chicago, which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
Since this news is released to MNI subscribers three minutes before the public release time listed on the calendar – the early market reaction is usually a result of trades made by these subscribers. Economists forecast suggest an influential figure of 47.2 vs. 43.2 this month.
Good luck and have an a profitable day ahead!
Sidebar rates
Related Posts
