It is expected that the GDP of the fourth quarter will appear in a flexible American economic progress
- The US GDP is expected to grow at an annual rate of 2.6 % in the second quarter of 2024.
- The US economy is expected to continue to grow at a health pace.
- The US dollar is in a recovery mode amid the aversion of the ruling risks.
The United States Economic Analysis Office (United States) (United) (United) is scheduled to issue the initial estimate of the US GDP GDP for a quarter-October to December on Thursday. Analysts expect the report to indicate an annual economic growth rate of 2.6 %, just less than 3.1 % published in the third quarter of the year.
What can be expected from the GDP numbers this time
The issuance of Bea’s first GDP is the most important for financial markets, as the number is the final indicator of US economic health. In addition to growth data, the report includes new PCE consumption expenses (PCE) – price index numbers, the preferred inflation scale for the Federal Reserve (Fed).
The current version is a little difficult, as the Federal Reserve announced its decision in monetary policy to maintain interest rates before the gross domestic product updates and PCE, and financial markets still digest the most recent on that front.
In December, the Federal Reserve has published its latest summary of economic expectations (SEP) or DOT plot, which showed escalating reviews in 2025 growth to 2.1 % of 2 % and basic enlargement to 2.5 % of 2.1 %. In general, another SEP suggested that political makers expect economic expansion and inflation to remain 2 % higher than their target for some time.
Besides reading the main GDP, market participants expect that the QC’s basic price index will be printed by 2.5 %, which is above 2.2 % published in the Q3.
Otherwise, the report includes the gross domestic product price index, which tracks the changes in the prices of goods and services produced locally, including exports but with the exception of imports. This index provides a clear vision of how inflation effect on GDP. For the fourth quarter, GDP price index is expected to increase by 2.5 %, an increase of 1.9 % in the third quarter.
It should be noted that the GDP of the Federal Reserve in Atlanta estimates the real GDP growth in the fourth quarter of 2024 is 3.2 % on Tuesday, an increase of 3.0 % on January 17.
When will the gross domestic product print and how can it affect the dollar?
The US GDP report will be published at 13:30 GMT on Wednesday. In addition to the real gross domestic product number, changes in private local purchases, gross domestic product price index and PCE Q4 price index numbers may affect US dollar evaluation (USD).
GDP title can support better than GDP, Federal Reserve Occupation and pressure on the US dollar while installed numbers can have an opposite effect on the American currency.
“The US dollar index (DXY) was recovered in an urgent environment for risks at the beginning of the week, but it is less than the highest monthly level published in mid -January at 110.18. Meanwhile, continuous progress is lacking, According to technical readings in the daily graph.
“Less than 107.75, which is January 29 inside the day, displays the monthly bottom at 106.97. However, given the environment that suffers from risk, the US dollar drops can be considered as purchase opportunities, with an additional decrease in the near term .
(A previous version of this story was corrected on January 30 at 07:34 to say that the gross domestic product is expected to grow at an annual rate of 2.6 % in the fourth quarter 2024, not 2.8 %.)
Economic indicator
Basic Personal Consumption Expenses (QOQ)
The basic personal consumption expenses (PCE), which you issued Economic Analysis OfficeIt measures the changes in the value of all the goods and services that the residents bought in a certain period except for the most famous components of food and energy. The quarterly data is released in the broader GDP report (GDP). Data is a consumer spending agent, and it is a major engine for the American economy. In general, high reading is seen as bullish of US dollar (USD), while low reading is extreme.
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Economic indicator
GDP price index
GDP price index (GDP), which was released every quarter annually by the Economic Analysis Office, measures the change in the prices of goods and services resulting in the United States. The prices that Americans pay for imports are not listed. Changes in the GDP price index are followed as an indicator of inflationary pressures, which may expect interest rates to rise. High reading is seen as a bullish state of US dollar (USD), while low reading is seen as declining.
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