US GDP expands less that expected in Q1
WASHINGTON (April 25) In the initial estimate released on Thursday by the US Bureau of Economic Analysis (BEA), it was revealed that the actual Gross Domestic Product (GDP) of the US expanded by 1.6% on an annualized basis in the January-March period. This expansion, coming in short of market predictions of 2.5%, followed a 3.4% growth in Q4 2023.
According to the press release: "Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated."
Additional data saw the GDP Price Index increase by 3.1% in the same period, a tad above estimates (3.0%) and up from the previous 1.7% gain.
Market Reaction
The Greenback gathers extra pace in the wake of the release, motivating the USD Index (DXY) to refocus on the upside and the 106.00 hurdle. Furthermore, the uptick in the index comes in tandem with a climb to fresh highs in US yields across the curve.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.37% | -0.85% | -0.28% | -1.28% | 0.64% | -0.69% | 0.38% | |
| EUR | 0.37% | -0.48% | 0.07% | -0.88% | 1.00% | -0.28% | 0.77% | |
| GBP | 0.85% | 0.48% | 0.54% | -0.41% | 1.47% | 0.19% | 1.24% | |
| CAD | 0.27% | -0.07% | -0.55% | -0.97% | 0.93% | -0.36% | 0.69% | |
| AUD | 1.22% | 0.85% | 0.41% | 0.94% | 1.85% | 0.54% | 1.64% | |
| JPY | -0.63% | -1.00% | -1.49% | -0.94% | -1.90% | -1.28% | -0.24% | |
| NZD | 0.63% | 0.29% | -0.21% | 0.36% | -0.60% | 1.26% | 1.08% | |
| CHF | -0.42% | -0.80% | -1.28% | -0.71% | -1.66% | 0.22% | -1.11% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
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