US: Annualized Real GDP grows by 6.4% (second estimate) in Q1 vs. 6.5% expected

US economy grew by 6.4% on a yearly basis in the first quarter.
US Dollar Index continues to move sideways near 90.00.

Eren Sengezer FXStreet

The United States' Real Gross Domestic Product (GDP) expanded at an annual rate of 6.4% in the first quarter of 2021, the US Bureau of Economic Analysis second estimate showed on Thursday. This reading matched the initial estimate and came in below the market expectation of 6.5%.

"Upward revisions to consumer spending and nonresidential fixed investment were offset by downward revisions to exports and private inventory investment," the publication read. "Imports, which are a subtraction in the calculation of GDP, were revised up."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen flat on the day at 90.02.

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 retreats below 1.3650, looks to post strong weekly gains

GBP/USD loses its traction and trades below 1.3650 after touching its highest level since February above 1.3670 on the back of upbeat UK PMI data. The US Dollar (USD) shows some resilience against its peers, supported by the encouraging PMI prints, and limits the pair's upside. Still, GBP/USD remains on track to end the second consecutive week in positive territory.

EUR/USD stays below 1.1700 after US PMI data

EUR/USD corrects lower and trades below 1.1700 following the bullish action seen in the European session despite the mixed PMI prints from Germany and the Eurozone. Meanwhile, the US Dollar holds its ground heading into the weekend after PMI surveys reaffirmed healthy business activity in private sector. Nevertheless, the pair remains on track to post strong weekly gains.

Gold tests three-month highs near $4,600 as the US Dollar dives

Gold extends gains on Friday, with bulls aiming for a retest of the $4,600 resistance area, the top of the last six months' trading range. Precious metals are gaining momentum, favoured by a sharp US Dollar selloff, following the announcement of a US Treasury plan to boost liquidity to repurchase long-term securities.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.