US: Atlanta Fed GDPNow for Q1 rises to 2.5%

Eren Sengezer FXStreet

According to the Federal Reserve Bank of Atlanta's GDPNow model, the US economy is expected to grow at an annualized rate of 2.5% in the first quarter, up slightly from 2.4% in the previous estimate.

"After this morning’s housing starts report from the US Census Bureau, the nowcast of first-quarter real residential investment growth increased from -10.4 percent to -8.1 percent," the Atlanta Fed explained in its publication.

Market reaction

This report doesn't seem to be having a noticeable impact on risk mood. As of writing, the S&P 500 Index was down 0.75% on a daily basis.

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 holds losses below 1.3400 amid escalating US-Iran tensions

GBP/USD finds some support near 1.3370 after a modest gap-down opening, though it lacks bullish conviction and remains below 1.3400. The pair suffers from a return of haven demand for the US Dollar amid renewed US-Iran military attacks and the resultant closure of the Strait of Hormuz. All eyes remain on Mideast updates and central bank talks.

EUR/USD battles 1.1400 amid USD strength, Iran risks

EUR/USD stays defensively close to 1.1400 in European trading on Monday. The pair faces headwinds as the US Dollar starts the week on a strong note on increased safe-haven appeal, following the weekend escalation between the US and Iran. However, hawkish ECB expectations limit the major's downside ahead of speeches from the Fed and ECB policymakers.

Gold seems vulnerable amid Iran risks reviving inflation fears, Fed hike bets

Gold maintains its offered tone through the Asian session, and currently trades just above $4,050, down nearly 1.40% for the day. A further escalation of tensions between the US and Iran, along with the closure of the Strait of Hormuz, lifts crude oil prices and revives inflation fears. This, in turn, bolsters expectations of higher interest rates by the US Federal Reserve, which benefits the safe-haven US Dollar, and drives flows away from the bullion.

Cardano: Ongoing whale accumulation fails to halt downward correction

Cardano (ADA) extends its losses, trading below $$0.160 after falling over 14% in the previous week. Despite on-chain data showing continued accumulation by whales, the buying activity has failed to lift prices. Meanwhile, bearish derivatives metrics and a weakening technical outlook indicate further downside for ADA.

The US won't default on $39 trillion debt: Why financial repression is coming and Gold is the only hedge

As the US national debt surges past $39 trillion, policymakers face an unsustainable economic trajectory that threatens the global financial system. With a formal default out of the question and fiscal austerity politically unfeasible, the US government is increasingly likely to rely on financial repression, artificially keeping interest rates below inflation to erode the real value of its debt.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.