What to Watch in the US GDP Report and Why It Matters for Forex Traders in the Philippines

Background: What is GDP?

Every few months, the United States releases a number called GDP. Don’t let the term scare you — it simply means Gross Domestic Product, or the total value of everything the country produces, from cars and gadgets to services in banks, hospitals, and shops.

Think of it like a report card for the US economy:

• If the grade is high (GDP is growing), it means businesses are busy, people are working, and money is moving.

• If the grade is low (GDP slows down), it signals weaker business, fewer jobs, and people holding on to their money.

Example in Forex

If you’ve ever watched crypto or stocks, you know prices move up and down based on news. Forex works the same way — but with currencies.

When the US economy looks strong, people around the world want more dollars, so the US dollar strengthens. That means if you’re trading EUR/USD or GBP/USD, the dollar might rise and push those pairs lower.

On the other hand, if the US economy looks weak, the dollar loses strength, and those pairs can go up.

Think of it like this: when a basketball team keeps winning games, more fans buy their jerseys. But when they keep losing, the support fades. The dollar works the same way with economic performance.

Why does it matter?

The US dollar isn’t just America’s money, it’s the world’s benchmark currency. Almost every country (including the Philippines) uses the dollar for trade and pricing. That means when the US economy moves, the whole world feels it.

For forex traders, GDP news can mean sudden price swings — sometimes within minutes. For non-traders, it can also affect the peso exchange rate, oil prices, and even the cost of imported goods.

How to read the numbers

No need for complicated math. The rule is simple:

• Stronger GDP = Stronger Dollar

• Weaker GDP = Weaker Dollar

Example: If analysts expect the US economy to grow by 2% but the report shows 2.5%, it’s a good surprise — the dollar might go up. But if the report shows only 1.5%, it’s weaker than expected — the dollar might drop.

What’s expected tomorrow?

Tomorrow, the US will release the Preliminary GDP report. This is the second “version” of the numbers for the last quarter. The first version (Advanced GDP) already came out last month, but this update is still important. Even a small change — higher or lower than forecast — can shake the forex market.

Why this matters for ordinary citizens

Even if you don’t trade forex, GDP affects your life more than you think. A strong US economy can strengthen the dollar against the peso, which means:

• Higher costs for imported goods (like fuel, gadgets, or groceries made abroad).

• More expensive loans or payments if they’re dollar-linked.

• But also, better value for OFW remittances (since dollars sent home convert to more pesos).

So whether you’re trading forex, budgeting at home, or waiting for remittances, the US GDP report still matters.

Final Note

Tomorrow’s GDP report could set the tone for where the US dollar goes next — and with it, the peso and global markets. Stand by for tomorrow’s results. Don’t ignore them — because the rest of the world won’t.

If you want to learn how to use news like this in forex trading, join our free workshop where we’ll break it down step by step.

And for more news that can help you earn in forex, visit www.gme.academy/news