U.S. Review
Data Details Show Economy Continues to Firm
- Second quarter GDP was revised higher to a 4.2 percent annualized rate, with the details painting a brighter picture of the economy. Compared to the first release, trade was less of a drag, nonresidential fixed investment was stronger and inventories provided a smaller—although still sizeable—boost.
- Headlines for housing data were mixed this week, but reports generally suggest the sector continues to gradually improve as home prices are increasing at more reasonable rates, supply is coming back and future recorded sales look to improve.
- Consumers' willingness to spend remains somewhat questionable, with personal spending slipping 0.1 percent.
Global Review
Canada Firming as Europe Struggles and Japan Falters
- Real GDP in Canada grew at a 3.1 percent annualized rate in the second quarter as a 3.0 percent increase in final domestic demand and a boost from trade offset a 1.9 percent drag from slower inventory investment. See our website for complete write-up on this week’s Canadian GDP report.
- In the International Review on page 4, we look at what the latest signal of slow growth in Europe means for ECB policy as well as how the Japanese economy is faring in the wake of the deleterious effects of the April consumption tax hike.
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Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: Slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.