US GDP Revised Up To 1.2% – USD Rises

May 26, 2017 at 8:46 AM EDT

Good news from the US: the economy grew by 1.2% annualized against 0.9% expected. Personal consumption was revised up to 0.6%.

Durable goods orders are up 0.7% but core orders disappointed with a drop of 0.4%. Excluding defense and air expenses, we see a drop of 0.1% against 0.5% expected.

The US dollar is slightly stronger but not going anywhere fast.

The US was expected to report an upgrade of the Q1 2017 assessment from 0.7% to 0.9%. The figures are all annualized. So, quarter over quarter, this would still keep us in the 0.2% zone.

Durable goods orders are released at the same time and are expected to fall by 1.2% against +1.7%. Core orders carry expectations for +0.5% after +0.8%.

The US dollar was strengthening ahead of the publication. EUR/USD slipped under 1.12, GBP/USD is around 1.2840, a drop of over 100 pips.

USD/JPY stands out and falls to 111. This is a risk off move.

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