US: Annual GDP expanded by 2% in second quarter as expected

Real economy expanded 2% in the United States as expected.
US Dollar Index inched lower with the initial market reaction.

Eren Sengezer FXStreet

In its third estimate on Thursday, the United States (US) Bureau of Economic Analysis (BEA) reported that the real gross domestic product (GDP) in the second quarter expanded by 2% to match analysts' expectation and the previous estimate.

"Downward revisions to personal consumption expenditures (PCE) and nonresidential fixed investment were primarily offset by upward revisions to state and local government spending and exports," the BEA said in its official press release.

"Imports, which are a subtraction in the calculation of GDP, were revised down."

The US Dollar Index eased from its session highs on the GDP report and was last virtually unchanged on the day at 99.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD holds lower ground near 1.1650 ahead of key US data

EUR/USD is holding lower ground toward 1.1650 in Wednesday's European session. The US Dollar is recovering modestly amid profit-taking and Middle East uncertainty. US inflation, tracked by the PCE, and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold corrects to near $4,620 in countdown to US PCE Inflation data

Gold price is down 0.75% to near $4,620 during the European trading session. The precious metal corrects as the rally pauses after posting a fresh three-month high at $4,697 the previous day, with investors turning cautious ahead of the United States Personal Consumption Expenditure Price Index (PCE) data for July at 12:30 GMT and Federal Reserve Chairman Kevin Warsh’s commentary at the Jackson Hole Symposium.

Hyperliquid eyes record high on rising revenue, ETF inflows

Hyperliquid (HYPE) is up 4% with bulls aiming to advance last week’s 43% gains to a fresh record high above $83.30. The “Everything Exchange” is gaining institutional and user demand, with Exchange Traded Funds recording daily inflows of over $5 million in each of the last two days, while printing daily revenue of over $2.75 million over the last seven days.

US core PCE inflation set to keep pressure on the Federal Reserve to hike interest rates

The United States Bureau of Economic Analysis is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. PCE inflation data for July is expected to reveal that price pressures remain high, well above the Fed’s 2% target.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.