The USD got no significant support from the GDP report. However, there were no reasons to sell it either.
The statistics on the GDP in the first quarter 2018 published last Friday by the USA were mixed. The indicator added 2.3% q/q after expanding by 2.9% q/q the quarter before and against the expected reading of +2.0% q/q.
The components of the report show that the major “contribution” was made by the Personal consumption expenditure, which was the worst over the previous five years.
As usual, the actual reading will be revised twice, because it was just the first estimate. One shouldn’t exclude a possibility that it might increase, as it usually happens. As a rule, revision of the indicator upwards provides the American currency with some significant support.
The economic outlook for the second quarter 2018 is stable so far: the Household Spending might expand, thus boosting the GDP thanks to the results of the taxation system reform that is taking place right now.
Another report was barely noticed by investors. The Michigan Consumer Sentiment Final increased up to 98.8 points in April after being 97.8 points in March and against the expected reading of 98.0 points.
The USD will have enough reasons to be active this week, that’s why these numbers will be forgotten quite soon.
RoboForex Analytical Department