{"id":154422,"date":"2019-08-29T14:09:34","date_gmt":"2019-08-29T18:09:34","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154422"},"modified":"2019-08-29T14:09:34","modified_gmt":"2019-08-29T18:09:34","slug":"dollar-edges-higher-following-q2-us-gdp-release","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/dollar-edges-higher-following-q2-us-gdp-release\/","title":{"rendered":"Dollar edges higher following Q2 US GDP release"},"content":{"rendered":"
August 29, 2019<\/div>
\r\n<\/div><\/div>

By Han Tan, Market Analyst, <\/strong>ForexTime<\/strong><\/a><\/p>\n

\n
\n
\n
\n

The second reading of the Q2 US GDP of two percent was in line with market expectations, which allowed the Dollar Index (DXY) to edge higher, having erased most of Friday\u2019s losses. Although investors are well aware of the slowdown in the US economy, the latest data underscored the strength of consumer spending (which makes up over 60 percent of US GDP), and shows that the primary growth driver in the world\u2019s largest economy is still resilient.<\/p>\n

Still, the headline figure suggests that the protracted US-China trade tensions are weighing on other sectors of the US economy, such as exports and investments. Faced with slowing growth prospects in the second half of 2019, the Federal Reserve\u2019s decision to lower US interest rates appears justified, with another Fed rate cut widely expected at the September FOMC meeting.<\/p>\n

Moving forward, shifting market expectations surrounding the Fed\u2019s policy path are set to sway DXY, as the Fed\u2019s data dependence continues being tested in the interim.<\/p>\n

\"\"<\/p>\n

 <\/p>\n

Sterling’s politically-driven slump buoys DXY<\/strong><\/p>\n

The Dollar Index has also been able to preserve its gains, due in some part to the weaker Pound, which accounts for 11.9 percent of\u00a0DXY. Given the rising prospects of a no-deal Brexit, in light of the suspension of the UK parliament beginning September 9, Sterling should find itself bogged down by the political uncertainties.<\/p>\n

\"\"<\/p>\n

 <\/p>\n

EU\u2019s economic woes continue to drag EURUSD lower<\/strong><\/p>\n

The bright spot in the US economy, namely domestic consumers, stands in stark contrast to the EU\u2019s overall economic outlook, with such disparity weighing on the Euro. The bloc\u2019s currency is also contending with the fallout from protracted US-China trade tensions, along with Brexit uncertainties and Italy\u2019s political turmoil, which makes for an overall dismal outlook on EURUSD.<\/p>\n

\"\"<\/p>\n

 <\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

\n

\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Han Tan, Market Analyst, ForexTime The second reading of the Q2 US GDP of two percent was in line with market expectations, which allowed the Dollar Index (DXY) to edge higher, having erased most of Friday\u2019s losses. Although investors are well aware of the slowdown in the US economy, the latest data underscored the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-154422","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=154422"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154422\/revisions"}],"predecessor-version":[{"id":154434,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154422\/revisions\/154434"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}