US GDP Growth Set to Slow Sharply in Q4 as Markets Await Key Data

The US Bureau of Economic Analysis (BEA) is scheduled to release its first preliminary estimate of Q4 GDP growth today at 13:30 GMT. Market participants are anticipating a significant deceleration in economic activity compared to the exceptionally strong performance recorded in the third quarter. This expected cooling comes as investors search for signs of a 'soft landing' and assess the lagging impact of previous monetary tightening by the Federal Reserve. As a high-impact macroeconomic indicator, the GDP data is expected to trigger volatility across major asset classes, including the DXY and SPY. A weaker-than-expected figure could fuel expectations for early interest rate cuts, while a surprise beat might support the 'higher for longer' narrative. Traders are closely monitoring the impact on major currency pairs like EUR/USD and USD/JPY, as well as gold prices.