US Dollar Index Edges Lower, US Q1 GDP Second Estimates Prints at 1.3%

• US economic growth slows, according to BEA data.
• US dollar slips as inflation seen nudging lower.

US real gross domestic product(GDP) increased at an annual rate of 1.3% in Q1 of 2024 according to the second estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2023, real GDP increased 3.4%.In the advance estimate, the increase in real GDP was 1.6%. The update primarily reflected a downward revision in consumer spending.

Other data showed the price index for gross domestic purchases increased by 3.0% in Q1, a downward revision of 0.1% from the previous estimate. Thepersonal consumption expenditures (PCE) price indexincreased 3.3%, a downward revision of 0.1%, and excluding food and energy prices, the PCE price index increased 3.6%, a downward revision of 0.1%.

BEA GDP Release

Today’s data did little to move interest rate cut expectations with the November FOMC meeting seen as the likely date for the first 25 basis point cut.

The US dollar slipped lower after the data release, but the move was limited. US Treasury yields also fell by 2-3 basis points, trimming recent gains.

US Dollar Index Daily Chart

Chart by TradingView

What are your views on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

https://www.dailyfx.com/news/us-dollar-index-edges-lower-us-q1-gdp-second-estimates-prints-at-1-3-20240530.html