Breaking: US GDP, durables beat expectations, EUR/USD dips below 1.10
|The world's largest economy grew at an annualized pace of 2.1% in the third quarter, better than 1.9% originally reported and expected.
Among the components, personal consumption has been upgraded from 2.8% to 2.9%, prices are now 1.8% compared to 1.7%, and the Core Personal Consumption Expenditure is down to 2.1% after the original report showed 2.2%. Inventories are now a net contributor to the growth and now a detractor.
A closer look shows that the weaker PCE and higher inventories imply that the growth upgrade is somewhat less impressive.
US Durable Goods Orders rose also exceeded early estimates. Orders excluding defense and aircraft – the "core of the core" – have jumped by 1.2%, far better than expected. Headline durables beat with 0.6% against -0.9% projected, while another core measure advanced by 0.6% against 0.1%.
Overall, October's investment figures are upbeat also on the details.
Jobless claims also exceeded expectations with 213K against 221K projected.
Overall, US data has exceeded expectations.
USD/JPY has risen to 109.25, while EUR/USD has dipped below 1.10. The November low of 1.0990 is the next level to watch.
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