BREAKING: US GDP growth below expectations, US weekly jobless claims fall less than forecast

The US economy grew by 6.5 % in the second quarter,  following a 6.4 % expansion in the previous three-month period, below analysts’ estimate of  8.5%. Growth was driven by increases in personal consumption expenditures, nonresidential fixed investment, exports, and state and local government spending that were partly offset by decreases in private inventory investment, residential fixed investment, and federal government spending. Imports also increased. The rapid spread of the coronavirus delta variant, supply-chain disruptions, shortage of workers and a cooling housing market are seen weighing on the growth for the rest of the year. The Fed sees the economy growing 7% in 2021 and 3.3% in 2022.

The number of Americans filing for unemployment benefits was 0.400 million in the week ended June 24th, compared to 0.419 million rise reported in the previous week. Today’s reading came in above market expectations of 0.380 million. Continuing claims reading, which lags initial jobless claims data by one week, increased  to 3.269 million, while analysts expected a decrease to 3.196 million. 

EURUSD broke above the 1.1880 resistance after  today's data releases and is heading towards next  resistance level at 1.1915. Source:xStation5