DailyFX.com -

Talking Points:

  • US Second-Quarter GDP 4.0% vs 3.0% expected; 2.9% prior
  • US Dollar Rises Against its Major Peers
  • US Dollar: 2Q US GDP Data May Outshine FOMC in Driving Volatility

US economic output rebounded sharply in the second quarter, boosting the US Dollar higher against its major peers. US 2Q GDP saw an annualized growth rate of 4.0 percent, beating estimates calling for a print of 3.0 percent. The outcome is a sharp contrast to the 2.9 percent drop in the prior period, and may suggest the US economic recovery is underway.

DailyFX Strategist Ilya Spivak says that there is supportive news-flow arguing for stimulus to be withdrawn relatively sooner than the second half of 2015 – seemingly the markets’ baseline scenario – is likely to boost the US Dollar and may force a selloff across sentiment-sensitive assets. Today’s strong outcome may support the argument, noted by the strong initial reaction of the US Dollar.

USD/JPY Rallies as US GDP Rebounds Strongly in the Second-Quarter

USD/JPY5-minute – using FXCM Marketscope 2.0.

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.

Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.

Related Articles
  1. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  2. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  3. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  4. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  5. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  6. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  7. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  8. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  9. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  10. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!