BREAKING: US GDP higher than expected; EURUSD ticks lower 📣

01:30 PM BST, United States - GDP data:

• GDP (Q2): actual 3.0% QoQ; forecast 2.8% QoQ; previous 1.4% QoQ;
• GDP Price Index (Q2): actual 2.5% QoQ; forecast 2.3% QoQ; previous 3.1% QoQ;
• GDP Sales (Q2): actual 2.2%; forecast 2.0%; previous 1.8%;
• PCE Prices (Q2): actual 2.5%; forecast 2.6%; previous 3.4%;
• Real Consumer Spending (Q2): actual 2.9%; forecast 2.3%; previous 1.5%;
• Core PCE Prices (Q2): actual 2.80%; forecast 2.90%; previous 3.70%;

01:30 PM BST, United States - Employment Data:

• Initial Jobless Claims: actual 231K; forecast 232K; previous 233K;
• Continuing Jobless Claims: actual 1,868K; forecast 1,870K; previous 1,855K;
• Jobless Claims 4-Week Avg.: actual 231.50K; previous 236.25K;

In the second quarter of 2024, the U.S. real GDP grew by 3.0% annually, up from 1.4% in the first quarter, driven by increases in consumer spending, private inventory investment, and nonresidential fixed investment. This represents an upward revision from the initial estimate of 2.8%. Current-dollar GDP rose by 5.5%, reaching $28.65 trillion. Personal income saw a $233.6 billion increase, while corporate profits rebounded by $57.6 billion after a decline in the previous quarter.

Market reaction is mostly bullish, with the dollar appreciation and decline in EURUSD. Overall, the market views the data optimistically, as a strong economy with decreasing inflationary pressure increases the chances of a soft landing scenario. Additionally, jobless claims do not indicate any deterioration in the labor market.