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31 Jul 2014
US economy stronger than expected - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, assessed the recent US GDP figures.
Key Quotes
"The big news yesterday was the US Q2 GDP release. First estimates were much stronger than expected, showing a 4.0% quarterly annualised gain against market expectations of a 3.0% increase and in addition, Q1 was revised stronger to -2.1% from a previous reading of -2.9%."
"Dissecting the numbers, there were respectable gains in consumer spending whilst business investment and housing investment posted strong gains at 5.5% and 7.5% respectively. The market had moved ahead of the announcement with GBPUSD dipping below 1.6900 after the news which also saw gains in equities. The FOMC followed in the evening and as expected, the Fed made no change to the 0-0.25% Federal funds target rate and continued to taper QE3 with a $10bn reduction in the monthly purchase pace to $25bn."
Key Quotes
"The big news yesterday was the US Q2 GDP release. First estimates were much stronger than expected, showing a 4.0% quarterly annualised gain against market expectations of a 3.0% increase and in addition, Q1 was revised stronger to -2.1% from a previous reading of -2.9%."
"Dissecting the numbers, there were respectable gains in consumer spending whilst business investment and housing investment posted strong gains at 5.5% and 7.5% respectively. The market had moved ahead of the announcement with GBPUSD dipping below 1.6900 after the news which also saw gains in equities. The FOMC followed in the evening and as expected, the Fed made no change to the 0-0.25% Federal funds target rate and continued to taper QE3 with a $10bn reduction in the monthly purchase pace to $25bn."