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Trader, analyst and instructor with a 6-year experience

What to expect from the US GDP?

US will release the final reading of the GDP growth for Q4 at 12:30 GMT on Friday. According to the consensus forecast, the reading will be raised from the second reading of 2.2% to 2.4%.

However, many analysts have so far reviewed their opinion to the downside about the Q1 growth. In the first 3 months of 2015 American economic growth is expected to be lower – even the Fed admitted it last week. Goldman Sachs lowered its Q1 GDP view to 1.8%, JPMorgan pared its outlook to 1.5% and Barclays shaved its forecast to 1.2%. As the reasons for lower forecasts the specialists site cold winter weather.

A forecast model from the Federal Reserve of Atlanta on Wednesday suggested the US economy is barely growing in Q1 (just +0.2%) following an unexpectedly steep 1.4% drop in durable goods orders in February.

Still, according to TDS, the overall US economic growth in 2015 will equal to 3.0% or higher. Analysts said that USD looks fairly valued at current (DXY) levels and it may consolidate near-term before starting to rise again when the Fed makes the coming rate hike evident.

 

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