FX.co ★ US Futures Edge Down After Strong GDP

On Tuesday, US futures experienced a slight decline, with contracts linked to the three main indices dropping approximately 0.1%. This movement followed the release of an unexpectedly robust US GDP growth figure. The delayed report indicated that the economy grew at an annualized rate of 4.3% in the third quarter, marking the fastest expansion in two years and surpassing the anticipated 3.3% growth rate. This performance was bolstered by strong consumer and business spending, along with more consistent trade policies. Concurrently, the weekly ADP report showed the private sector added jobs for the third consecutive week in early December. Together, these data points strengthened the belief that the Federal Reserve will maintain interest rates in January. However, the robust economic performance has also sparked concerns that it may prevent the central bank from reducing interest rates in the coming year.