The data says far more than the Fed
The Atlanta Fed slashed its Q2 GDP tracker yesterday and that was a signal that the growth data would disappoint. Did it ever.
For all the talk of US strength, growth is running at just 1.0% through the first half of the year. Granted, the consumer was strong in Q2 and a fall in inventories may exaggerate the weakness, but the bottom line is the number and 1.2% second quarter growth is dismal.
The dollar tells the story.
EUR/USD has rallied 50 pips higher to 1.1154 in the third day of gains. The mid-July high of 1.1165 is a line of resistance to watch with the potential for stops above.
