Breaking: US GDP beats with 2.6%, USD moves up

Yohay Elam FXStreet

The US economy grew at an annualized pace of 2.6% in Q4 2018, slightly better than expected. For the full year, the economy grew by 3.1%, a healthy rate.

Personal consumption, the most important component, rose by 2.8%. The Core PCE stood at 1.7%.

All in all, a slight beat and the US Dollar rose. EUR/USD dropped below 1.1400 on the news, retreating from the three-week highs.

Join our live GDP coverage

The US was expected to report an annualized GDP growth rate of 2.3% in the fourth quarter of 2018, slower than 3.4% in the final read for Q3. The publication has been delayed due to the government shutdown, the longest in history.

The plunge in retail sales in December caused quite a few economists to raise their eyebrows and made predicting the GDP data harder.

Apart from the GDP data, initial jobless claims are due at the same time.

Earlier, markets focused on the unsuccessful Kim-Trump summit in Hanoi, Vietnam. Trade talks between the US and China and

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.