EURUSD reached a new bottom and is trying t reach stability.
The major currency pair remains under bearish pressure. the current quote for the instrument is 1.0545.
Yesterday, the US released the GDP Q1 2022 report. The first estimate showed that the country’s economy dropped 1.4% q/q after gaining 6.9% q/q in the previous quarter and against the expected reading of 1.1% q/q.
The components of the report show that the consumer spending added 2.7%, while the government spending dropped 5.9%, which is the biggest decline in several years. The export lost 5.9%, while the import remained almost the same.
The report says that some enterprises and institutions were not operating as usual due to the increase in new coronavirus cases in the first quarter. However, government welfare payments were reduced – the programmes were either closed or expired.
The GDP report is quite a detailed release that shows the actual state of things in the economy. A drop early in the year is not good news, especially since nothing seems to spell troubles. The US labour market remains stable, household spending is quite high. However, one may assume that the fourth quarter of 2021 was the peak time for the US economy, which may later reach stability and return to an average growth driven by domestic capacities instead of the QE programme.
