US Prelim Q2 GDP to be revised higher - Barclays

Dhwani Mehta FXStreet

In the view of Barclay’s Research Team, the second readout of Q2 US GDP data is expected to show a slight acceleration in the GDP growth rate.

Key Quotes:

“We look for real GDP growth to be unchanged at 2.6% q/q saar in the second estimate of Q2 17 GDP.

Incoming data point to a one-tenth upward revision to consumption (to 2.9% from 2.8%) as well as relatively minor upward revisions to structures investment, inventory accumulation, and government spending. Offsetting these improvements are residential investment and equipment spending, each of which should receive modest downgrades relative to what was assumed by the BEA in the advance estimate.

We look for the contribution of net trade to growth to be unchanged (at 0.2pp).”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD remains sidelined around 1.1600

EUR/USD clings to its decent gains on Monday and continues to move in a consolidative mood around the 1.1600 region. Improved risk appetite following the US-Iran agreement to reopen the Strait of Hormuz continues to weigh on the US Dollar, lending support to the risk complex. Looking ahead, investors are likely to remain on the sidelines ahead of Wednesday's FOMC meeting.

GBP/USD retreats from tops, back to 1.3420

GBP/USD keeps its advance past the 1.3400 yardstick at the beginning of the week. In the meantime, Cable continues to draw support from improved market sentiment following reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold stays firm, still below $4,400

Gold builds on its recent gains on Monday, climbing well north of the $4,300 mark per troy ounce. The yellow metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.