Slowdown of US GDP?

ECB decision in focus as US earnings season continues

While central bank decisions and events have become increasingly relevant and followed, today's announcement could hold even more importance as it will precede next week's FED announcement where the US central bank is expected to announce the long awaited QE tapering. The ECB is unlikely to change it's rates at the moment but we could see further indications of what the central bank is planning and what it's economic outlook is heading into Q4 2021, particularly in Lagardes press conference shortly after the decision. The announcement will follow German CPI data and will precede the release of earnings report from two US mega caps (Apple and Amazon).

US GDP for Q3 expected to show significant slowdown

Today's US GDP report for Q3 could be particularly impactful as it is expected to show a significant slowdown, another indication that rising costs, supply chain issues and restrictions are continuing to have a noticeable impact on the economy as a whole while affecting certain sectors more noticeably. It is possible that today's data could influence the FEDs upcoming decision where it is expected the US central bank will announce its QE tapering as the issue has been delayed several times. While annualized GDP growth is expected at 2.7%, down from 6.7% in the previous quarter, a significantly better than expected report could seal the deal on the upcoming QE decision.

Walid Koudmani

Market Analyst working in UK-Italian-Arabic markets covering a broad range of assets including stocks, commodities, FX and crypto. English, Italian and Arabic Speaker with a B.A in Business Management. Quoted in many prestigious publications including the Guardian, Barrons and Lefigaro and winner of bloomberg top forecast rank Q-2/Q-3 2020.