US: Longest sustained economic expansion in history - RBS

Sandeep Kanihama FXStreet Contributor

Analysts at Royal Bank of Scotland point out that it was a record-breaking quarter for the US economy with the recovery from the financial crisis became the longest sustained economic expansion in history in Q2 2019.

Key Quotes

“It wasn’t one of the more stellar reports. The 2.1% annualised pace was so-so, slower than the 3.1% pace of Q1. More encouragingly consumer spending is in rude health – 4.3% annualised growth was the best since late 2017. No jitters over the impacts of the trade war there. Corporate America is a different story with business investment declining slightly.”

“All in all, it’s enough to keep the Fed in line to cut 25bps this week.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.