According to the Federal Reserve Bank of Atlanta's GDPNow model, the US economy is expected to contract by 1.9% in the second quarter, up slightly from the July 1 forecast of -2.1%.

"After this week's releases from the Institute for Supply Management, the US Census Bureau, and the US Bureau of Economic Analysis, the nowcasts of second-quarter real personal consumption expenditures growth and real gross private domestic investment growth increased from 0.8% and -15.1%, respectively, to 1.3% and -14.9%, respectively, while the nowcast of the contribution of the change in real net exports to second-quarter GDP growth decreased from 0.38 percentage points to 0.21 percentage points," Atlanta Fed explained in its publication.

Market reaction

The greenback preserves its strength after this report and the US Dollar Index was last seen rising 0.05% on the day at 107.10.