US Q1 GDP Misses Forecasts, PCE Beats Estimates, US Dollar Moves Higher

US Q1 GDP, US Dollar Analysis and Charts

• US Q1 Q/Q GDP misses expectations.
• Personal Consumption Price Index (PCE) beats estimates.
• US dollar slips past picks up.

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US maturation remains affirmative but the precocious look astatine Q1 GDP showed output slowing. The Q/Q header fig of 1.6% missed marketplace forecasts of 2.5% and was little than fractional the 3.4% seen successful Q4 2023. The 2nd estimation of US Q1 GDP volition beryllium released connected May 30th.

While the lower-than-expected GDP fig would bring complaint cuts backmost to the fore, the terms scale for gross home accumulation roseate sharply compared to the anterior quarter.

According to the US Bureau of Economic Analysis, ‘Theprice scale for gross home purchasesincreased 3.1 percent successful the archetypal quarter, compared with an summation of 1.9 percent successful the 4th fourth (table 4). Thepersonal depletion expenditures (PCE) terms indexincreased 3.4 percent, compared with an summation of 1.8 percent. Excluding nutrient and vigor prices, the PCE terms scale accrued 3.7 percent, compared with an summation of 2.0 percent.’

The US dollar fell connected the GDP fig but turned astir consecutive distant arsenic traders factored successful the PCE increases. Today’s merchandise is improbable to spot US complaint cuts bought guardant with the marketplace present afloat priced for a 25 bp chopped successful November.

The US dollar is backmost supra 1.0600 and eyes the caller multi-month precocious astatine 106.50.

US Dollar Index Daily Chart

Chart by TradingView

What are your views connected the US Dollar – bullish oregon bearish?? You tin fto america cognize via the signifier astatine the extremity of this portion oregon you tin interaction the writer via Twitter @nickcawley1.