2023 Q1 United States GDP Falls short the previous by 60-Points
The Gross Domestic Product (GDP) is the total monetary or market worth of all the finished goods and services produced within a nation’s boundaries during a given time frame. Though the GDP is calculated quarterly but in an annualized format.
There are three versions of the GDP which are released at different times; Advanced GDP, Preliminary GDP, and Final GDP. The Advanced GDP is released first and thus has the highest impact on the market. Traders and Investors are concerned about the GDP because it serves as the main indicator of the health of the economy and the widest measure of economic activity.
Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the fourth quarter of 2022, after increasing 3.2 percent in the third quarter. The increase in the fourth quarter primarily reflected increases in inventory investment and consumer spending that were partly offset by a decrease in housing investment.
Profits decreased 2.0 percent in the fourth quarter after decreasing less than 0.1 percent in the third quarter. Private goods-producing industries increased 4.0 percent, private services-producing industries increased 2.3 percent, and government increased 2.1 percent. Overall, 17 of 22 industry groups contributed to the fourth-quarter increase in real GDP.
The DXY is in a downtrend – trading below the 200-day MA since December 2022, which accounts for why the GOLD has refused to sell even with all the technical confirmations for a sell. Nevertheless, the Dollar currently sits at a support around 101. The release of the GDP can either cause a break of the Support or a bounce off the level to the upside.
Note: If the release of the actual GDP figure is greater than the forecast, it is good for the US Dollar and a possible decline for GOLD – all things being equal.
Why do Investors and Traders care?
A stronger-than-expected GDP growth rate can indicate that the economy is performing well, which can boost investor confidence and lead to higher currency value. Conversely, a weaker-than-expected GDP growth rate can signal that the economy is struggling, which can cause investor uncertainty and lead to lower currency value.
Investors and traders care about the United States Advanced GDP report because it provides a comprehensive picture of the health and performance of the US economy. GDP stands for Gross Domestic Product, which is a measure of the Gross value of all goods and services produced within a country during a specific period.
The Advanced GDP report provides an early estimate of the GDP growth rate for the previous quarter. This information is important to investors and traders because it provides insight into the overall strength of the economy, which can impact the performance of financial markets.
Now reach out to your ACT Trading platform and mark up your most preferred USD-related pairs, and FUND your trading account, as you position yourself to capitalize on the GDP release.
US Dollar Pairs you can trade include USDCHF, USDCAD, USDJPY, AUDUSD, EURUSD, GBPUSD, NZDUSD, XAUUSD (gold), XAGUSD, BTCUSD, ETHUSD, US100, US30, US500, APPLE, FACEBOOK, NETFLIX, COCA-COLA, FORD and so on.
Schedule for The US Advanced GDP release: Friday 27th April 2023. 1:30 pm (W.A.T)
Author: A.A. James
- The New Zealand Dollars (NZD) Now In Focus As The RBNZ Is Set To Hike its Official Cash Rate Further
- DXY BREAKS OUT OF THE DAILY DEMAND – Strong Enough to Start a Bull Market?
- CURRENCY QUAKE: BRICS Alliance Sends Shockwaves Through US Dollar – Will the Retail Sales Say Otherwise?
- CADCHF COOKING A MASSIVE RALLY – The CXY Approaching H4 Demand.
- GOLD BECOMES INDECISIVE – DXY Stuck in Demand Zone.