We are pleased to share with you this latest market update from Phyllis Riley, Director at Global Chamber® member Tempus:
The U.S. Dollar was on the decline Friday following the release of Gross Domestic Product and Personal Consumption figures. GDP quarter-over-quarter growth for Q2 came in at 2.6%, just under the estimated 2.7% while Personal Consumption grew at its forecast 2.8% pace.
However, only Personal Consumption numbers in the first quarter were revised upward while the opposite occurred for GDP. Also worth noting is that Core PCE (Personal Consumption Expenditures), the Fed’s favored way to gauge inflation, improved to 0.9% over the expected 0.7%, however, worse in Q1 than thought. Overall, the slate of statistics signals that economic progress is just barely around where forecasted and may not be good enough to surge the greenback against most counterparts, especially a much appreciated Euro.
Surprisingly, Wednesday’s Federal Open Market Committee (FOMC) statement, which had no press conference to elaborate further, explained that members want to unwind the balance sheet soon by selling bonds purchased during QE, but this did not boost the dollar. Chances of a hike in September are as low as 4.1% and December is not guaranteed at 41.8%.
Will the economy be able to handle further monetary tightening? Stay tuned next week as Fed officials give us plenty of opportunities to explain their thoughts.
About Tempus, Inc.
Tempus, Inc. is a world leader in foreign exchange and international payment services. Its expertise adds unique value through a combination of convenient service, market insight, and strategic currency products. Tempus and its global affiliates leverage a combined annual Foreign Exchange (FX) volume of over $150 billion to deliver sharper rates of exchange directly to their clients thereby reducing their exposure to volatile currency fluctuations. The company serves all organizations that require FX including manufacturing and industries involved in import-export and other international commerce. In addition, they meet the FX needs of service industries including tour operators, freight forwarders, patent attorneys, and associations. Other sectors include equipment, construction, food, wine and liquor, textile and apparel, medical supplies, furniture, sports gear, and musical instrument. Tempus also serves industries that import raw materials and parts such as chemicals, aviation, automotive, and electronics.
For more information, contact Phyllis Riley, Director Business Development at Tempus, 800-834-2497; firstname.lastname@example.org