exness: U.S. GDP shrinks, yen bounces back

Review:

On Thursday, the U.S. dollar index extended its decline, amid worries about a recession in the U.S. GDP.Most non-US currencies rebounded, precious metals rose further, and crude oil was under pressure.The U.S. economy unexpectedly shrank in the second quarter, with consumer spending growing at the slowest pace in two years and business spending falling, raising the risk of a recession.

The data showed that the initial value of the US GDP in the second quarter was -0.9% year-on-year.Economists polled by Reuters had forecast a rebound in GDP of 0.5 percent.Economists' forecasts ranged from a low 2.1% contraction to a high 2.0% growth.The economy shrank 1.6% in the first quarter.The economy shrank 1.3% in the first half, meeting the definition of a "technical recession."

Affected by this, the dollar weakened in short-term fluctuations, and U.S. bond yields followed the decline, as the market fueled speculation that the Federal Reserve would not raise interest rates as aggressively as previously expected.Meanwhile, the turmoil in the U.S. economy has further highlighted concerns about the shape of the global economy, with the yen and gold back in favor.The dollar and the yen fell strongly in the short-term, breaking through the 133.00 support mark.

The United States will announce the latest inflation data in the evening. The market expects the core PCE price index in the United States to grow at a monthly rate of 0.5% in June, and an annual rate of 4.7%.In addition, the market will also usher in the US July Chicago PMI and the University of Michigan consumer confidence index.

On the daily chart, the dollar and the yen dived in the short-term, and once pierced the 133 mark support.In terms of form, the exchange rate has a strong downward momentum recently, breaking down 135.60 to achieve a structural breakdown, facing short-term short-term risks, and the downward target of this round may point below 131.50.On the upside, the resistance of the exchange rate is concerned about the 134 mark.