The statistics are in favor of the USD. Overview for 28.03.2018

The main currency pair started falling after the USA published the final revised GDP report.

Investors started selling EURUSD right after the USA reported on the revised GDP reading over the fourth quarter 2017. The current quote for the instrument is 1.2390.

The latest report on the US GDP over the fourth quarter exceeded expectations. The indicator expanded by 2.9% q/q against the expected reading of 2.7% q/q and the previous estimate of 2.5% q/q. The GDP Price Index didn’t change and remained at 2.3% q/q.

Well, everything turned out to be the same as expected. Over the last several years, the GDP has always been revised upwards in any of three estimates. When the first estimate for the fourth quarter 2017 was published, it was said that the next estimate would be highly likely revised upwards due to some new data that might appear. And this was exactly the way it happened. The numbers show that the American economy continues recovering and improving, which is very positive for the USD.

Another report, the Wholesale Inventories, increased by 1.1% m/m in February, which is better than both the previous and the expected readings, 0.8% m/m and 0.6% m/m respectively. Right now, investors are totally focused on the GDP report, but the Wholesale Inventories numbers may provide useful information about the population’s readiness to buy and manufacturers’ – to produce. So far, the numbers are quite positive.

RoboForex Analytical Department