US Q1 GDP growth’s disappointment, the dollar edged higher. In Q1 the US economy grew by 1.1% as opposed to the expected 2% growth.
US GDP Review and Analysis
According to the most recent US Bureau of Economic Analysis (BEA) figures The US economy increased by 1.1% in Q1, falling short of forecasts of 2% growth. In Q4 2022, the economy increased by 2.6 percent. “In contrast to the fourth quarter. The decline in real GDP in the first Q1 was mainly caused by a decrease in private investments in inventory. And a decrease in non-residential capital investments,” The BEA reports. an increase in consumer expenditure, an uptick in exports, and a lower decline in fixed investments in homes. Somewhat paid for these developments. Imports appeared.
The initial look at Core PCE prices increased to 4.9%. Relative to a prediction of 4.7% and 4.4 percent, In the preceding quarter.
US GDP and Core PCE Table
The publication of the Core PCE Price Index (March), the Fed’s preferred indicator of US inflationary pressures. It will give an up-to-date look at US inflation on Friday at 13:30 UK. With the market now factoring in a 25 basis point rise to 500-525, tomorrow’s carefully expected inflation release.
Today’s growth and price statistics will have an important part in how the FOMC decides to set interest rates next week. The US central bank will then stop rising interest rates before beginning a price-cutting phase at the close of Q3, according to current market pricing.
Economic Activity Schedule for Friday
The PCE statistics helped the US dollar advance, but it still trades in a medium-term downturn. The 20-day simple moving average is proving to be a strong resistance for the dollar. It is expected to stay that way till Friday’s data report.
USD Index up on data and yields
On Thursday, the erratic trading in the index with the remainder of the world’s assets is still going strong.
The US file revealed that the flash GDP Growth is likely to have increased at an average of 1.1% in Q1 vs. estimates for a 2.0% expansion. Which helped the US Dollar regain some of its lost impetus.
The PCE Prices increased by 4.2% QoQ and 4.9% when compared with the Core PCE Prices. Both of these were hotter-than-expected readings for the GDP Price Index, which came in at 4.0%.
The one-month SMA, which seeks to take the weekly data’s volatility into account, dropped by 4,000 to 236,000. While ongoing claims decreased to 1,858,000, they were still close to their highest point of 2021.
