1 May 2014
Soft US GDP gives a hurdle for the USD - UBS
FXStreet (Córdoba) - The UBS analyst team notes that weak US gross domestic product put pressure on the USD.
Key Quotes
“The first estimate of US GDP was released with a 0.1% increase, calculated on a quarter-on-quarter annualized basis.This is basically a black zero, which can easily be turned into a red figure with the revisions”.
“The main drag on growth came from trade. US imports have grown much quicker than exports. It is still early stages, but a continuation of that trend could raise worries that the US is running into the same trade deficit trap as it did before the financial crisis”.
Key Quotes
“The first estimate of US GDP was released with a 0.1% increase, calculated on a quarter-on-quarter annualized basis.This is basically a black zero, which can easily be turned into a red figure with the revisions”.
“The main drag on growth came from trade. US imports have grown much quicker than exports. It is still early stages, but a continuation of that trend could raise worries that the US is running into the same trade deficit trap as it did before the financial crisis”.