The Second Estimate of US Q4/16 GDP Growth Unchanged at 1.9%

The Second Estimate of US Q4/16 GDP Growth Unchanged at 1.9%\

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''Free Forex Signals's'' analysis for Forex international Market.

About Forex Planners,This is For an upward revision to 2.1%, The updated estimate falls a little short of market expectations.Consumer spending was stronger than previously estimated but that was make up for by weaker government expenditure and business fixed investment.Consumer spending growth was revised up to 3.1% in the second approximation of Q4/16 GDP from 2.5% up to that time, now similar the previous quarter's pace. While 2016 was a strong year for consumer expenses, the 2.7% annual raise fell short of the previous two years' gains. Stronger Q4/16 family circle expenditure was counterbalance by modest downward revisions somewhere else most significantly government spending, which is now predictable to have edged up just 0.31%. Business unchanging investment was also revised lower; at 1.32% in Q4/16, there is no longer confirmation of a important pickup comparative to the previous two quarters. With residential investment still screening a near 10.1% increase, final domestic order was revised up slightly to 2.61% from 2.52% previously. Net exports remained a important drag (with an unwind of Q3/16's surge in food exports a major factor) while a stronger supply build provided some offset.Thanks for view ''Free forex signals''.

Our Take.

And the important that, Offsetting revisions to Q4/16's spending detail left increase unmoved, and it remains the case that a lift up in household spending relative to Q3/16 made for a more hopeful report than the headline GDP figure suggests. The upward revision to consumer expenditure indicates strong impetus in the household sector toward the end of the year, but a more unassuming increase in business investment is somewhat hopeless, leaving less confirmation of rebalancing in domestic growth on the way to the end of last year. While the latter movement is less positive than previously predictable, we continue to expect non-residential investment will pick up diffidently this year beside improving business reaction, supplementing another strong input to growth from consumer expenditure. Our estimate has also built in some economic incentive, though much of the boost to yearly growth could fall more in 2018 as indications that tax improvement might not come before late-summer boundary the range for an add from economic policy this year. Thanks for read this post.Thanks for view ''Free forex signals''.

UPDATE 2-Bank of Canada's Poloz says satisfied with messaging

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VANCOUVER Nov 1 Bank of Canada Governor Stephen Poloz said on Tuesday he was satisfied with the way the central bank communicated its last policy decision, despite the volatile reaction of markets, because it conveyed that the downside risks it warned about had solidified.

Poloz acknowledged the rocky reaction to the bank's Oct. 19 rate decision and subsequent news conference, during which Poloz surprised markets with the news that policymakers had actively considered cutting rates but ultimately held them steady.

"I'm satisfied that in a relatively tricky situation with a lot of moving parts that both in our press release and in the subsequent remarks we were able to offer clarity on how we think about those things," Poloz told reporters following a speech in Vancouver.

"Both the press release and the remarks indicated clearly that the risks that we highlighted in September had in fact crystallized... In the end, the market takes the information and runs with it and it is what it is."

The Canadian dollar initially firmed after the Oct. 19 rate decision. But Poloz's subsequent revelation that the central bank had "actively discussed" adding stimulus then sent the currency tumbling, drawing criticism from some market players.

Scott Smith, senior market analyst at Cambridge Global Payments, said on Tuesday that Poloz has little room to object to how markets respond to his communication.

"He can't be viewed by market participants as being reactionary or necessarily caught off guard in terms of how the market responds to his actions or his thoughts," Smith said.

In his speech to a Vancouver business group, Poloz said the bank had seriously considered raising its inflation target to give it more flexibility to cut rates, but decided unconventional measures provide more room to maneuver than previously believed.

Arguing in favor of the renewal of the inflation target at the midpoint of a 1-to-3 percent range, Poloz said pushing inflation up to 3 percent "might be quite difficult to do, and might require some significant economic fluctuations, given how well inflation expectations appear to be anchored at 2 percent."

He also reiterated that the government is better suited to address threats like a hot housing market or high household debt than the "very blunt tool" of moving interest rates. Thanks.