07.30.2018 / 08:08

US Gross Domestic Product Weaker Than Expected

The U.S. dollar turned negative on Friday, giving up early gains in the wake of a report of second-quarter gross domestic product which underperformed lofty expectations, but underscored a buoyant economy. U.S. GDP came in at an annual rate of 4.1% in the three-month period between April and June, compared with average economists for 4.2%. That pace of growth comes after 2.2% print in the first three months of the year, raised from an original reading of 2%. Still, Trump said the U.S. economy was on track for growth of 3% or better this year in a news conference to discuss GDP following the data release. In other data, the University of Michigan consumer sentiment for July came in at 97.9 on Friday, beating consensus estimates of 97.3, but still booking a six-month low..
The ICE U.S. Dollar Index which measures the greenback against six major rivals, was down 0.1% at 94.673. For the week, the gauge is still up 0.2%, but for the month of July it is little changed. holding in positive territory so far. The broader WSJ Dollar Index was down 0.1% at 88.28. Friday’s GDP also influenced the euro by virtue of the buck ‘s slide. A single euro last fetched $1.1659 versus $1.1644 late Thursday in New York. The euro is looking at a 0.7% loss on the week, according to FactSet data. The shared currency decline after Thursday’s European Central Bank meeting that left investors looking for additional clarity on the central bank’s path to policy normalization disappointed. The ECB announced in June that it would taper its asset purchases into year-end but not raise interest rates until summer 2019.