US GDP
US GDP Growth Rate Historical Chart:
Market Impact Scenarios:
Better than expected GDP figures are generally bullish for a given currency, while negative figures are bearish. GDP numbers measure how fast or slow the domestic economy is growing. Strong US GDP figures will indicate higher economic activity in the country, attracting foreign investors to both the US stock market and the Treasury bond market. This increases the demand for US dollars, and correspondingly, the value of the dollar relative to other foreign currencies.Understanding GDP:
Gross domestic product is the broadest measure of economic activity in a country, and is the total market value of all goods and services produced in the country during a given period of time minus the cost of goods and services used up in the process of production. Gross Domestic Product is calculated as:GDP = C + I + G + (EX – IM)
where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services
An economy is generally considered to be in recession if it has two successive quarters of contraction.
The US GDP figures are released quarterly, about 60 days after the quarter ends, and are reported in an annualized format.
There are three versions of GDP released a month apart – advance, preliminary, and final. The Advance release is the earliest and tends to move markets the most upon release.
- See more at: http://www.forexnews.com/blog/2013/05/29/us-gdp/#sthash.CkkfotRH.dpuf
