Key Takeaways:
- 💵 Dollar fell after revised data showed slower GDP growth in the US
- 📉 Downgrade in first-quarter growth contributed to easing bets on Fed interest rate cuts
- 📈 Long-term Treasury yields above 4.6% boosted U.S. debt attractiveness and pushed the dollar higher
- 💴 Dollar was down against the Japanese yen, near a critical level for potential intervention
- 🇪🇺 Euro was up after dropping to a two-week low, while sterling also rose
- 🏦 Fed interest rate reduction expectations have been pared back amid sticky inflation
- 📊 Market waiting for inflation data releases to anticipate Fed’s future moves
- 💰 Personal Consumption Expenditures price index and euro zone price data due for release
- 💸 US economy grew at a sluggish 1.3% annual pace from January through March
- 📉 First quarter’s GDP growth marked a sharp slowdown from the previous quarter
- 🏬 Consumer spending rose at a slower pace, impacted by high interest rates and inflation
- 📦 Surge in imports and a reduction in business inventories were main factors for last quarter’s pullback
- 💼 Services spending rose at a healthy rate, while spending on goods saw a significant drop
- 📈 An uptick in business investment, particularly in housing, software, and research and development
- 📈 Consumer prices rose at a 3.3% annual pace in the first quarter
- 📉 Signs of economic weakness include more Americans falling behind on credit card bills and slowing hiring
- 📉 Fed delaying rate cuts due to inflation remaining above 2% target level
- 🔮 Economic growth expected to accelerate to a 3.5% annual rate from April through June
- 📉 Weekly jobless claims increase, surpassing expectations
- 📉 U.S. equity futures trend lower, but slightly recover after data release
- 📉 Treasury yields fall across the curve, with 10-year yield at 4.57%
- 📈 Gold prices rise by 0.3%
U.S. Economic Landscape Update
The U.S. economic landscape is experiencing fluctuations and adjustments as various economic indicators are observed and analyzed. The recent revision in the first-quarter GDP growth to 1.3% has impacted the financial markets, leading to shifts in currency values such as the dollar weakening against the Japanese yen.
Furthermore, the Federal Reserve’s decision on interest rate cuts is influenced by factors like sticky inflation and rising consumer prices. While there are indications of economic weakness, such as slowing hiring rates and more individuals falling behind on credit card payments, there is also optimism regarding a potential acceleration in economic growth in the coming months.
Investors are closely monitoring market trends, inflation data releases, and upcoming economic reports to gauge the Federal Reserve’s future actions and anticipate how these factors will shape the U.S. economy in the near term.