The second version of the U.S. GDP reading was upgraded to show a faster 3.0% expansion in Q2 2024 versus the initially reported 2.8% figure. This also reflected a significant acceleration in economic growth compared to the Q1 2024 GDP of 1.4%.

The positive revision to the preliminary GDP reading mostly came from higher consumer spending on services and goods, particularly gasoline and other energy commodities.

Components of the report, however, revealed that non-residential fixed investment, exports, and private inventory investment were downgraded.

Link to U.S. Preliminary GDP for Q2 2024

Meanwhile, the preliminary price index for the same period also enjoyed an upgrade from 2.3% to 2.5% instead of staying unchanged as expected. Excluding volatile food and energy prices, the PCE price index for the period is up 2.8%, a downgrade of 0.1% from the initial estimate.

U.S. dollar vs. Major Currencies: 5-min

Overlay of USD  vs. Major Currencies Chart by TradingView

The Greenback, which had been moving mostly sideways with a slight upward tilt leading up to the preliminary GDP release, turned sharply higher upon seeing the upgrades to both growth and inflation readings.

The weekly initial jobless claims report released at the same time also came in slightly better than expected at 231K versus the 232K consensus and previous 233K increase.

USD chalked up its largest gain versus JPY, followed by CHF and NZD, although the gains were soon faded around a couple of hours after the GDP numbers were printed. Weaker than expected pending home sales released later on reflected a steeper than expected 5.5% monthly drop in July, bringing contracts down their lowest level on record since 2001.