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Fan Yang

US GDP Growth: 0.1% (Q1 - annualized) vs. Forecast: 1.2%

The annualized US GDP in Q1 came in at 0.1%, the slowest growth since Q4 of 2012. The Q4, 2013 reading was also revised down from 3.2% to 2.6%. Economists had forecast a reading of 1.2% for Q1. 

Here's a breakdown of the components. 

This is a pretty bad report from the US. The silver lining is that this low output growth can be attributed to the harsh winter weather and thus might be temporary. If we get decent manufacturing data tomorrow from the US, traders might not let this poor GDP weight down USD so much. Then Friday's NFP will complete this week's full slate of event risks.

  • 1 1 correctly predicted forecast
    Sasha Singh
    Agree with you. US dollar losses seems limited as this data shows the impact of adverse weather condition. Dollar will again gain strength if any of the above mentioned data beats economists expectation.
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  • 1 1 correctly predicted forecast
    Fan Yang
    Yes, we can forgive the cold weather. But the fact that government spending exploded only to give a 0.1% annual growth is concerning. Still, the market is always forward looking so monetary policy and FOMC tone take center stage.
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