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US real GDP expands 1.3% in first quarter vs. 1.6% in first estimate

  • The BEA revised Q1 US GDP growth lower to 1.3%.
  • US Dollar Index stays in negative territory below 105.00.

The US' real Gross Domestic Product expanded at an annual rate of 1.3% in the first quarter, the US Bureau of Economic Analysis' (BEA) second estimate on Thursday. This reading followed the 1.6% growth recorded in the first estimate and came in line with the market expectation.

"With the second estimate, downward revisions to consumer spending, private inventory investment, and federal government spending were partly offset by upward revisions to state and local government spending, nonresidential fixed investment, residential fixed investment, and exports," the BEA explained. "Imports were revised up."

Market reaction

The US Dollar (USD) came under bearish pressure with the immediate reaction. At the time of press, the USD Index was down 0.3% on the day at 104.80.

Gold declines on higher interest-rate expectations

Gold (XAU/USD) edges lower into the $2,330s on Thursday and finds support at the 50-day Simple Moving Average (SMA).
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US: Initial Jobless Claims increased more than estimated last week

US citizens that applied for unemployment insurance benefits increased by 219K in the week ending May 25 according to the US Department of Labor (DoL) on Thursday.
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