Final GDP results were recently published in the U.S. and proved utterly disappointing. While many major media pundits have been singing the praises of the American economy, Digital Markets Advisor has been warning for a significant amount of time that the States is far from clearing its economic problems. A figure of minus -2.9% came in for the GDP today, the expectations was minus -1.8%.
There is no way to deny this is a huge miss and will certainly affect the Fed. The question is how the White House and Federal Reserve will try to put a positive spin on this numbers. To top off the bad GDP numbers from the States, the Core Durable Goods statistics also missed its estimate badly.
The EUR has traded stronger on this news and the USD will certainly continue to be tested the remainder of the day. Also the major indexes on Wall Street may come under some pressure today.
The data from States today cannot be explained away easily. Nor should they be.