The main news yesterday was the release of the U.S. GDP data in Q1 2014. Thus, the index fell by 2.9% compared with an expected decline of 1.7% and a preliminary reading of -1.0%. The reason for the decline was the bad weather in North America, the weak economic recovery in Europe and slowing growth in China and Brazil, which has led to drop in exports by 8.9% against the previous estimate of 6.0%. Negative factor for economic growth was the increase in inventories, which led to a drop in GDP by 1.7%.
The fall in GDP was the fastest since Q1 2009. It should be noted that in the 2nd and 3rd is expected the acceleration quarter of growth due to deferred demand and improving in the U.S. labor and housing market. Despite this, we expect a significant correction by 10-15% in the medium term.
Wish you the profits!
FXFINPRO Capital Analytical department.