Percent changes calculated from real quantity indexes and chained-dollar levels are conceptually the same; any differences are due to rounding. Chained-dollar values are not additive because the relative weights for a given period differ from those of the reference year. In tables that display chained-dollar values, a “residual” line shows the difference between the sum of detailed chained-dollar series and its corresponding aggregate. The gross domestic purchases price index measures the prices of final goods and services purchased by U.S. residents. Current‑dollar GDP increased 5.2 percent at an annual rate, or $360.0 billion, in the second quarter to a level of $28.63 trillion. In the first quarter, GDP increased 4.5 percent, or $312.2 billion (tables 1 and 3).

GBP/USD holds below 1.2850, all eyes on Fed rate decision

It is possible to incorporate futures or options strategies on the USDX. An overvaluation of the USD led to concerns over the exchange rates and their link to the way in which gold was priced. President Richard Nixon decided to temporarily suspend the gold standard, at which point other countries were able to choose any exchange agreement other than the price of gold. In 1973, many foreign governments chose to let their currency rates float, putting an end to the agreement. Chained-dollar values are calculated by multiplying the quantity index by the current dollar value in the reference year (2017) and then dividing by 100.

Key source data and assumptions

The update will present revised statistics for GDP, GDP by Industry, and gross domestic income. For details, refer to Information on 2024 Annual Updates to the National, Industry, and State and Local Economic Accounts. The increase in consumer spending reflected increases in both services and goods. Within services, the leading contributors were health care, housing and utilities, and recreation services. Within goods, the leading contributors were motor vehicles and parts, recreational goods and vehicles, furnishings and durable household equipment, and gasoline and other energy goods.

Technical Summary

The “second” estimate for the second quarter, based on more complete data, will be released on August 29, 2024. For information on updates to GDP, refer to the “Additional Information” section that follows. Dollar Index includes the dollar’s relative value compared to a basket of foreign currencies. https://www.1investing.in/ Initially, it included the Japanese yen, British pound, Canadian dollar, Swedish krona, Swiss franc, West German mark, French franc, Italian lira, Dutch guilder, and Belgian franc. Gross domestic income (GDI) is the sum of incomes earned and costs incurred in the production of GDP.

Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods. Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study. For example, a price above its moving average is generally considered an upward trend or a buy. Many groups are piling into gold, including central banks and sovereign governments.

Fed meeting – What to expect

1. The table below shows the average revisions to the quarterly percent changes in real GDP between different estimate vintages, without regard to sign.
2. The “second” estimate for the second quarter, based on more complete source data, will be released on August 29, 2024.
3. The rest-of-the-world (ROW) component of profits is measured as the difference between profits received from ROW and profits paid to ROW.
4. Gold has also become very popular among individual Chinese investors and family offices that cater to the global rich….
5. Over the last several years, the U.S. dollar index has been relatively rangebound between 90 and 110.
6. Gross domestic product (GDP), or value added, is the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production.

Also, the start of the 2-day FOMC meeting Tuesday sparked short-covering in the dollar. However, the dollar gave up its gains Tuesday when the 10-year T-note yield dropped to a 4-1/2 month low, weakening its interest rate differentials. The USDX allows traders and investors to monitor the purchasing power of the U.S. dollar relative to the six currencies included in the index’s basket. The Federal Reserve established the dollar index in 1973 to track the value of the U.S. dollar. Two years earlier, President Richard Nixon had abandoned the gold standard, which allowed the value of the dollar to float freely in foreign exchange (forex) markets.

Not surprisingly, analysts have tamped down S&P 500 revenue growth estimates for 2023. According to Yardeni Research, the consensus estimate for the fourth quarter is +9%. The higher interest rates rise, the more demand there is for U.S. dollars from foreign investors, and that applies further upward pressure on the USDX. In the past year, the USDX has climbed 17.3% from around 94 to above 110. The dollar index tracks the relative value of the U.S. dollar against a basket of important world currencies. If the index is rising, it means that the dollar is strengthening against the basket – and vice-versa.

DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. The US Dollar Index, also known as DXY, is used by traders seeking a measure of the value of USD against a basket of currencies used by US trade partners. The index will rise if the dark cloud cover pattern Dollar strengthens against these currencies and will fall if the Dollar weakens against these currencies. Plan your technical analysis of the US Dollar Index by tracking its price in the chart and keep up with the latest market movements with news, advice pieces, and the dollar index forecast.

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas’ experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning. Investing.com – Russia stocks were higher after the close on Tuesday, as gains in the Power, Oil & Gas and Mining sectors led shares higher.At the close in Moscow, the MOEX… That wasn’t as steep as Tesla’s drop, but it was still the single heaviest weight on the S&P 500 because its total market value tops Tesla’s.

Brent crude, the international standard, fell 57 cents to $80.25 a barrel. Smaller stocks had been jumping as Treasury yields eased on expectations that inflation is slowing enough for the Federal Reserve to begin lowering its main interest rate in September. Alphabet dropped 5% even though it delivered better profit and revenue for the latest quarter than expected.

The Fed’s top priority in 2022 has been bringing down inflation from multi-decade highs, and its best weapon has been raising interest rates. The Fed has already raised the fed funds rate to a range between 3% and 3.25%. In fact, the Federal Open Market Committee (FOMC) has issued three consecutive large rate hikes of 75 basis points.

A combination of supporting factors lifts the Gold price higher for the second successive day. Geopolitical risks, modest USD downtick and global economic woes underpin the XAU/USD. Traders now look to the Fed policy decision before committing to a firm near-term direction. Despite uncertainties hanging in the air over the Federal Reserve’s (Fed) next steps, optimism about the robustness of the US economy is helping the Greenback to gain ground. The forthcoming decision from the Fed due on Wednesday alongside the labor market data expected this week will be pivotal indicators for the market. The Barchart Technical Opinion widget shows you today’s overally Barchart Opinion with general information on how to interpret the short and longer term signals.

The exchange also offers USDX options contracts with six different expiration dates, ranging from one month to one year in the future. GDP by industry and gross output estimates are released with the third estimate of GDP. The table below shows the average revisions to the quarterly percent changes in real GDP between different estimate vintages, without regard to sign.