EURUSD: US Q2 advance GDP +2.1% vs +1.8% expected

EURUSD didn’t react much on the news as already trading close to daily low around 1.1135 despite the stronger GDP reading. On the downside there is one strong support left at 1.1101 the yearly low, which if breached the selloff can accelerate down to 1.10. On the upside immediate resistance stands at 1.1150 the daily high while more offers will emerge at 1.1243 the 100 day moving average.

Here is the scorecard:

United States Personal Consumption Expenditures Prices (QoQ) above forecasts (0.6%) in 2Q: Actual (2.3%)

United States Core Personal Consumption Expenditures (QoQ) below forecasts (2%) in 2Q: Actual (1.8%)

United States Gross Domestic Product Price Index came in at 2.5%, above forecasts (1.9%) in 2Q

And here are the key points from press conference:

“The deceleration in real GDP in the second quarter reflected downturns in inventory investment, exports, and nonresidential fixed investment. These downturns were partly offset by accelerations in PCE and federal government spending.”

“Current-dollar personal income increased $244.2 billion in the second quarter, compared with an increase of $269.8 billion in the first quarter.”

“The price index for gross domestic purchases increased 2.2% in the second quarter, compared with an increase of 0.8% in the first quarter.”

USDJPY got a positive reaction on the news and adds about 12 pips at 108.75. Gold move to the daily low at 1,414Don’t miss a beat! Follow us on Twitter.