All eyes on the dollar as traders/investors look forward to the US GDP q/q scheduled to be released at 1:30 pm GMT and the likely effect on the USD.
- The seasonally adjusted annual rate of growth is estimated to drop to +3.0% from +5.0%. Likely to weaken the USD.
- The Core personal consumption expenditures (PCE) price index, which excludes the food and energy prices, is also expected to slow, eventually it could weight on the USD negatively.
- Employment cost index is forecast for growth on a y/y basis, but expected to slow q/q ; which may be positive for the USD.
It is worthy of note that a 3% growth in GDP is actually a positive reading, sufficient to keep feds on “tightening schedule” as FOMC anticipates 2.6%to 3.0% growth in 2015, therefore, 3.0% would actually be better than projected.