US data reviewed with GDP tracker update - Nomura

Ross J Burland FXStreet

Analysts at Nomura offered a reveiw of the US Wholesale inventories and gave their GDP tracking update.

Key Quotes:

"In the final estimate, wholesale inventories grew 0.1% m-o-m in September, slightly below expectations (Consensus: 0.2%), which was revised downward by 0.1 percentage point from the preliminary estimate of 0.2% m-o-m increase. August wholesale inventories were revised upwards to a decline of 0.1% m-om (previously reported as -0.2% m-o-m).

GDP tracking update: As noted above, the September wholesale inventories estimate was revised downwards from the preliminary estimate by one-tenth of a percentage point, which is weaker than the BEA’s assumptions. This reading implies there was less inventory investment in Q3, suggesting less contribution of inventory investment to Q3 GDP. In addition, the upward revision in August was not sufficient to meaningfully impact our tracking estimate. However, on a rounded basis, our Q3 GDP tracking estimate was unchanged at 3.1%. On the other hand, weaker inventory accumulation in Q3 implies increased inventory accumulation in Q4. Therefore, we revised upwards our Q4 GDP tracking estimate by 0.1 percentage point to 1.7% from 1.6%."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.