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US dollar falls after GDP data and statements by Lagarde
Dollar Falls Fastest In Two Weeks As DXY Tests Monthly Lows After Weak US GDP Data
Oct 28, 2021
1 min read
Anna BakkerNews analyzer

Euro jumped at a press conference by ECB President Christine Lagarde.

According to the first preliminary estimate, the US GDP in the third quarter grew by 2.0% (year on year), the US Department of Commerce said Thursday. The data turned out to be weaker than expected, which assumed an increase of 2.6%. The spread of the delta strain of coronavirus and supply disruptions have stalled the rise in activity.

Earlier this year, the country's economy showed much higher growth rates. US GDP in the 1st quarter grew by a record 6.3% per annum, and in the 2nd quarter it grew by 6.7%, writes DJ Newswires.

Consumer spending in the third quarter rose 1.6% annually after growing 12% in the previous quarter. These indicators reflect the meager spending on durable goods, the shortage of which in the market is associated with disruption of global production chains.

About 45% of economists polled by The Wall Street Journal in October predict that supply problems will not be resolved until the second half of 2022. Shortages and supply problems are likely to continue to negatively impact production, slowing consumer spending and keeping inflation high for several months.

The euro rose after comments from ECB President Christine Lagarde on inflation. The ECB predicts inflation will continue to rise in the near future, but then decline over the next year, Lagarde said at a press conference after the ECB meeting.

“The period of rising inflation will be longer than we expected. The eurozone economy continues to rebound steadily, although growth has weakened, ”she said.

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