GDP

The German Prelim GDP came out at -0.5% from the previously revised -0.4%. This was forecast for a slight rise to -0.2%.  This makes two successive quarters of contraction for Germany, otherwise known as a recession in Germany.  

The EUR softened up after this worse than forecast data out of the largest EUROZONE economy in Germany.

The US GDP fell by 0.3% a touch better than expectation of 0.5%. The Personal Consumption came in at -3.1% which is worse than expected.  Exports and Governement helped.  The Consumer is the key, however.  They account for 70% of GDP. The consumption was the sharpest decline since 1980. 

US 3rd quarter GDP will be released at 8:30 AM EDT.  The expectation is for a 0.5% decline for the quarter.  The decline would be the largest since the 3rd quarter of 2001.  Moreover Consumption is expected to plunge by 2.4% from a gain of 1.2% last quarter.  This is the largest decline since  the 4th quarter of 1990.  The GDP Price index is expected to come in at 4.0% versus 1.1% last quarter.  Core PCE is expected to rise by 2.5% from 2.2%. 

The UK Prelim GDP came out at -0.5% from the previous 0.0%.  A drop to -0.2% was forecast.

The GBP softened up as this data came out below expected.  This comes behind an overnight where the GBP is getting hammered across the board. 

Personal Consumption was lower at 1.2% versus 1.7%. The last three quarters show Personal Consumption of 1.0%, 0.9% and 1.2%.  This is the lowest three quarter average since June of 1991.  Going forward expect continued weakness in consumption which account for 70% of the US economy.  The GDP was boosted by export growth which should also slow going forward as global growth slows. 

The UK Revised GDP comes out flat at 0.0% from the previous 0.2%. This was forecast for a slight drop to 0.1%.

The GBP softened up across the board after this weaker than expected data. The currency fell to session lows and is still dropping.

GDP  2q +1.9% vs expected 2.3%
CHI PMI 50.8 vs 49.0
CHI PMI - prices paid the highest  since 1980 at 90.7

The UK Prelim GDP comes out at 0.2% from the previously revised 0.3%. This was forecast for a small drop to 0.2%.  This is the lowest release since the first quarter of 2005.

The GBP got bid after this data across the board despite the USD making some gains vs. the other majors at this time.

At 4:30 AM today, the UK's Preliminary GDP is released.  This data gauges the change in the value of all services and goods produced by the UK economy.  The Preliminary GDP is the first of 3 versions of GDP released.  This number is a strong indicator of the health of any countries economy. As this number beats forecast, it typically benefits the currency.

A drop to 0.2% is forecast for this release from the previously revised 0.3%. 

US GDP came out at 1.0% as expected

GDP Price Index came in at +1.1% versus +1.0% expected

Core PCE QoQ came in at +2.3% versus +2.1%.  This could be worrying to the FOMC.