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Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeFOREXU.S. GDP falls in second quarter, dollar index continues to slide

U.S. GDP falls in second quarter, dollar index continues to slide

On July 29, the U.S. dollar index temporarily reported 106.21, opening at 106.16. The dollar slipped 0.1% against a basket of major currencies to 106.25 on Thursday. Data on Thursday showed the U.S. economy unexpectedly shrank in the second quarter, with consumer spending growing at the slowest pace in two years and business spending falling, raising the risk of a recession.

According to the first estimate of the annualized quarterly rate of real gross domestic product ( GDP ) in the second quarter of the United States released by the Bureau of Economic Analysis of the U.S. Department of Commerce on July 28, local time, the U.S. GDP in the second quarter fell by 0.9% year-on-year, a slight decline. That was smaller than the 1.6% decline in the first quarter. The decline in real GDP reflected declines in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment, the report said. It is reported that the GDP estimates released this time are based on data that are incomplete or require further revision by the source agency. A second-quarter forecast based on more complete data will be released on Aug. 25. According to a previous report by Reuters, economists surveyed by the US media predict that if the US economy shows negative growth for two consecutive quarters, the US economy will technically fall into recession.

USDX

Resistance levels: 106.50 (ultra short), 106.90/107.00

Support location: 105.90/106.10, 105.30/50, 105.00

It is expected that the intraday range of 105.90/106.10-106.50/80 will mainly fluctuate