According to the Federal Reserve Bank of Atlanta's GDPNow model, the US economy is expected to contract by 1.2% in the second quarter, up from the July 19 forecast of -1.6%.

"After recent releases from the US Census Bureau and the National Association of Realtors, the nowcast of the contribution of inventory investment to second-quarter real GDP growth increased from -2.50 percentage points to -2.30 percentage points, while the the nowcast of the contribution of the change in real net exports to second-quarter real GDP growth increased from 0.18 percentage points to 0.59 percentage points," Atlanta Fed explained in its publication.

Market reaction

The US Dollar Index stays flat on the day near 107.20 after this report.