According to the Federal Reserve Bank of Atlanta's GDPNow model, the US economy is expected to contract by 1.5% in the second quarter, down from the July 8 forecast of -1.2%.

"After recent releases from the US Bureau of Labor Statistics, the US Census Bureau, the Federal Reserve Board of Governors, and the US Department of the Treasury's Bureau of the Fiscal Service, the nowcast of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth decreased from 1.9% and -13.7%, respectively, to 1.5% and -13.8%, respectively," Atlanta Fed explained in its publication.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen losing 0.5% on the day at 108.10.