US: NY Fed's GDP Nowcast edges higher to 2.2% for Q4 after this week's data

The US economy is expected to grow by 2.2% and 5.5% in the fourth quarter of 2020 and the first quarter of 2021, respectively, the Federal Reserve Bank of New York's latest Nowcasting Report showed on Friday. 

"News from this week’s data releases increased the nowcast for 2020:Q4 by 0.1 percentage point and increased the nowcast for 2021:Q1 by 0.3 percentage point," the NY Fed explained in its publication. "Positive surprises from ISM manufacturing and imports data were only partially offset by negative surprises from employment data in both quarters."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen posting small daily gains at 89.87.