According to the Federal Reserve Bank of Atlanta's GDPNow model, the US economy is expected to contract by 1% in the second quarter, down from the June 27 forecast of +0.3%.

"After recent releases from the US Bureau of Economic Analysis and the US Census Bureau, the nowcasts of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth decreased from 2.7% and -8.1%, respectively, to 1.7% and -13.2%, respectively, while the nowcast of the contribution of the change in real net exports to second-quarter GDP growth increased from -0.11 percentage points to 0.35 percentage points," Atlanta Fed explained in its publication.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen losing 0.27% on the day at 104.81.