To Recess Or Not To Recess, US Awaiting GDP Data

Thursday’s GDP update will help provide a correct answer to whether US economy has fallen into recession. It is becoming more difficult to figure out what is really going on in the globe’s largest economy. Firmer Final US GDP in the second quarter could offer US dollar rebound as Fed policymakers keep optimistic.

Up till now, updated growth figures could show the economy was not as weak as it looks. The labour market looks robust and the government on Thursday will release new annual estimates of the US Gross Domestic Product.

GDP is the widely accepted as the official scorecard of sorts for the economy. However, the hawkish Fed and the West versus Russia tensions with inflation fears, could keep the EUR/USD traders nervous.

As a result, today’s German inflation gauge and the final readings of the US Q2 GDP will be crucial for immediate direction. Firmer numbers are in favor more to the US dollar than the EUR.