29 Oct 2015
What to expect from today's US Q3 GDP? - TDS
FXStreet (Bali) - The Strategy Team at TD Securities looks for US Q3 GDP to show a deceleration to 1.5% from 3.9% in Q2.
Key Quotes
"With the Fed muscling market pricing for 2015 rate hikes back above the 50% mark, the market’s attention will shift back to fundamentals."
"We look for Q3 GDP to show a deceleration in the pace of growth momentum to 1.5% from 3.9% in Q2."
"The devil will be in the details for the market reaction, and we look for personal consumption to remain strong at 3.4% as final domestic demand continues to grow at a 3.0% pace."
"If the details of the report are stronger than the headline reading suggests, Treasuries could continue to bear flatten as the market pushes December hike odds higher still."
"September pending home sales and weekly jobless claims will largely play second fiddle, with the former expected to rebound 1.6% m/m and the latter to edge lower to 254k from 256k."
"Treasury will also auction $29bn in 7s following the weak 5yr sale, with averages pointing to a decent sale stopping 0.3bp through as the buy side takes 67% of the auction."
Key Quotes
"With the Fed muscling market pricing for 2015 rate hikes back above the 50% mark, the market’s attention will shift back to fundamentals."
"We look for Q3 GDP to show a deceleration in the pace of growth momentum to 1.5% from 3.9% in Q2."
"The devil will be in the details for the market reaction, and we look for personal consumption to remain strong at 3.4% as final domestic demand continues to grow at a 3.0% pace."
"If the details of the report are stronger than the headline reading suggests, Treasuries could continue to bear flatten as the market pushes December hike odds higher still."
"September pending home sales and weekly jobless claims will largely play second fiddle, with the former expected to rebound 1.6% m/m and the latter to edge lower to 254k from 256k."
"Treasury will also auction $29bn in 7s following the weak 5yr sale, with averages pointing to a decent sale stopping 0.3bp through as the buy side takes 67% of the auction."