US Dollar Surges as GDP Beats Ahead of Fed Meeting; USD/JPY New Highs

The US Dollar has extended its gains this morning on the back of a stronger than anticipated 2Q’13 US GDP report, alongside several other revisions that saw growth come in higher than previously reported over the past several years. The +1.7% annualized reading, in context of the now +0.1% 4Q’12 print and +1.1% 1Q’13 GDP print, shows that the US economy’s growth is accelerating despite fiscal headwinds.

Here are the key figures driving US Dollar strength ahead of the US cash equity open:

- GDP (2Q A) (Annualized): +1.7% versus +1.0% expected, from +1.1% (revised lower from +1.8%)

- Personal Consumption (2Q A): +1.8% versus +1.6% expected, from +2.3% (revised lower from +2.6%) (y/y)

- GDP Price Index (2Q A): +0.7% versus +1.0% expected, from +1.3% (revised higher from +1.2%) (y/y)

- Average GDP growth from 2009 to 2012: +2.4% (revised higher from +2.1%)

USDJPY 1-minute Chart: July 31, 2013

 

Following the release, the USDJPY, already boosted by the beat on the July ADP jobs report, rallied from ¥98.13 to as high as 98.52, a fresh session high and highest level of the week. The pair remains well-bid from just an hour earlier in the session, when the USDJPY was near the lows under 97.60.

 

Source: http://dld.bz/cKsbT