🎇USD weakens after US GDP data

The American economy unexpectedly contracted an annualized 1.4% on quarter in the first three months of 2022, well below market forecasts of a 1.1% expansion and following a 6.9% growth in Q4 2021. The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased. Personal consumption expenditures (PCE), nonresidential fixed investment, and residential fixed investment increased.

The number of Americans filling for unemployment benefits was  0.180million in the week ended April 23, compared to 0.184 million reported in the previous week. Today’s reading came in line with market expectations. 

Continuing claims reading, which lags initial jobless claims data by one week, dropped to 1.408 million from 1.417 million, while analysts expected a decrease to 1.403 million. 

EURUSD bounced off the 1.0480 support after release of today’s data and if current sentiment prevails resistance at 1.0580 may be at risk. Source:xStation5