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 7 forecast of -1.9%.

"After this morning's employment situation report by the US Bureau of Labor Statistics and the wholesale trade report from the US Census Bureau, the nowcasts of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth increased from 1.3% and -14.9%, respectively, to 1.9% and -13.7%, respectively," Atlanta Fed explained in its publication.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen trading flat on the day near 107.00.