US Quarterly Final GDP Index and Its Impact on the Forex Market

US Quarterly Final GDP Index report

Release Date Quarterly Final GDP Change Forecast Previous Market Reaction
27/6/2024 1.4% 1.4% 1.3% negative
28/3/2024 3.4% 3.2% 3.2% Positive

US quarterly final GDP index

The quarterly final gross domestic product (GDP) is a measure of the total final value of all goods and services produced in an economy over a specified period of time. This indicator reflects the rate of economic growth.

And when the index comes out with higher numbers than expected:

  • This means that economic growth is faster than expected.
  • This provides better opportunities for companies to grow and increase revenues.
  • It could push the stock market higher because investors see this as a positive sign.

While the release of the indicator with fewer numbers than expected:

  • Means that economic growth is slower than expected.
  • This may negatively affect the future returns of the companies.
  • It may push the stock market down because investors view that as a negative sign.

Impact of US Quarterly Final GDP Index on US Dollar Trading in Forex?

The final GDP indicator has a significant impact on the value of the US dollar in the forex market. When the rate of economic growth exceeds expectations, this usually strengthens the position of the currency and its value in the market for several reasons:

  • Strong economic growth indicates that domestic investment and spending are increasing. This increases the demand for dollars.
  • It also increases the odds of an interest rate hike by the Fed, making the dollar more attractive to investors.
  • While the slow growth rates weaken the position of the dollar, because the demand for the dollar is less for investment and trading.
  • It reduces the possibility of an increase in interest rates in the near future, which makes investing in the dollar less attractive.

In general, the value of the dollar moves in a similar direction to published economic growth rates. The US GDP indicator has a strong influence on the trading and value of the US dollar.

The body responsible for issuing the US quarterly final GDP indicator

The US Department of Commerce is responsible for issuing the quarterly final US GDP indicator.

More specifically, they are issued by the National Accounts Division of the US Department of Commerce. Reports on GDP are published on a quarterly and annual basis.

The department works closely with the National Bureau of Economic Research and other federal agencies to measure economic growth and extract data from businesses, homes and factories.

It then analyzes the data and publishes the final quarterly GDP report (after each quarter ends) to the public and market.

The GDP indicator is based on a series of continuously updated data on US economic activity to measure changes in aggregate production.

When is the final US quarterly GDP indicator released?

It is released quarterly, about 85 days after the end of the quarter

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