US GDP steady into the third quarter

The dollar saw another bout of weakness as US GDP data released for the second quarter showed the world’s leading economy expanding at 2.6 percent. This was an expansion but not the expansion the market was hoping for. The underwhelming GDP print combined with a stubbornly low rate of inflation has cast the possibility of a third rate rise in the US into doubt and this is what appears to be moving market sentiment. With the dollar trading lower and US treasury yields continuing to sell off both the market and the FED are in wait-and-see mode for the remainder of the third quarter.