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Better than expected GDP report was released in early US session but markets' reactions are so far mild. Dollar and yen are generally firm while stocks open nearly flat. Some noticeable strength is seen in commodity currencies together with a rebound in treasury yield as well as gold after the GDP report. However, the rebound is brief as gold quickly falls back to below 950 while crude oil resumes recent fall towards 70 level. After all, more upside in dollar and yen are still in favor in near term.
Preliminary GDP report in US was unexpectedly left unrevised at -1.0% contraction. Markets expected a downward revision to -1.4% annualized rate. In addition, the report showed that corporate profits rose by the biggest rate since Q1 2005 by 5.7%. Initial jobless claims fell to 570k, above expectation of 563k. Continuing claims continued to drop to 6.13M.
Germany Gfk consumer sentiment for Sep improved to 15 month high of 3.7 from revised 3.4 but fell short of expectation of 3.8. Germany prelim CPI rose 0.2% mom in Aug, versus expectation of 0%. Eurozone M3 money supply growth slowed for another month and more than expected to 3.0% yoy. Australia leading indicator rose 0.9% in June. New Zealand trade deficit narrowed to -163M in Jul.