US: Real GDP increased at an annual rate of 3.4% in Q3 vs 3.5% expected

Eren Sengezer FXStreet

"Real gross domestic product (GDP) increased at an annual rate of 3.4 percent in the third quarter of 2018, according to the "third" estimate," the Bureau of Economic Analysis reported on Friday.

Key takeaways from the press release

In the second quarter, real GDP increased 4.2 percent.
With this third estimate for the third quarter, personal consumption expenditures (PCE) and exports were revised down, and private inventory investment was revised up; the general picture of economic growth remains the same.
Real gross domestic income (GDI) increased 4.3 percent in the third quarter, compared with an increase of 0.9 percent in the second quarter.
Current-dollar GDP increased 4.9 percent, or $246.3 billion, in the third quarter to a level of $20.66 trillion.
The price index for gross domestic purchases increased 1.8 percent in the third quarter.
The PCE price index increased 1.6 percent, compared with an increase of 2.0 percent.
Excluding food and energy prices, the PCE price index increased 1.6 percent, compared with an increase of 2.1 percent.

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.

AUD/USD bulls seem hesitant above 0.6950 amid Mideast jitters

AUD/USD struggles to capitalize on the previous day's bounce from the weekly low, consolidating above mid-0.6900s during the Asian session on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. However, geopolitical risks and a hawkish Fed limit deeper losses for the safe-haven buck, capping spot prices amid receding RBA rate hike bets.

USD/JPY retakes 158.00 after Japan's weak Household Spending data

USD/JPY reclaims 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties. This, along with BoJ rate-hike bets and intervention fears, limits JPY losses and keeps the pair confined in a familiar range.

Gold extends range play around $4,150 as bullish USD undertone caps gains

Gold trades with a positive bias for the second straight day on Friday, though it lacks bullish conviction and remains confined in a range held over the past two weeks or so. The overnight decline in US bond yields keeps the US Dollar depressed below an 18-month high, allowing the non-yielding bullion to recover further from a two-month low. However, the Fed's hawkish outlook and Iran risks favor USD bulls, capping the commodity.

Hyperliquid drops to $84 as Hyperliquid Labs begins $330 million OTC distribution

Hyperliquid Labs distributed 3.75 million HYPE tokens, worth about $330 million, through an over-the-counter (OTC) arrangement with an undisclosed institution, rather than selling the tokens on public exchanges. According to onchain data shared by OnchainLens on Wednesday, the tokens completed a seven-day unstaking period before the full allocation was credited to Hyperliquid Labs’ spot balance.

War should be bullish for Gold. Right now it's capping it

Oil is up by more than a third since the US and Israel went to war with Iran on February 28. Gold is down by about a fifth over the same stretch. The war reaches Gold through the Federal Reserve (Fed) rather than through fear. Every jump in Oil adds to the case for higher US interest rates, and higher rates make a metal that pays nothing more expensive to hold.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.