President Trump set a 4 percent growth target for the U.S. as one of the points he felt America was lagging behind other economies. The publication of the advanced GDP numbers will serve as a benchmark for how big a gap there is to cover.
The U.S. Bureau of Economic Analysis (BEA) will release the first estimate of fourth quarter gross domestic product (GDP) on Friday, January 27 at 8:30 am EST. The forecast by the Atlanta Fed calls for a gain of 2.9 percent. The expected range goes from 2.1 percent to 3.0 percent with a slowdown in exports in the fourth quarter.
The USD is higher across the board as stock market gains and comments from president Trump about infrastructure spending gave the currency a lift. The inflation implications of fiscal stimulus and investing in infrastructure will force the Fed to keep hiking rates and rate divergence will keep the dollar bid. Trump has gone back and forth from his growth policies that boost the USD and his protectionist ones that undermine the strength to the currency. U.S. growth will be a focus point and the release of the first of three estimates on Q4 growth is sure to get a reaction from the current administration.