The five largest US banks reported Q2 earnings on July 14, providing key insights into the health of the US economy. JPMorgan reported EPS of $5.92, beating expectations of $5.79. Revenue grew 8% to $43.2 billion. Goldman Sachs reported EPS of $11.82, far exceeding expectations of $10.25. Bank of America reported $0.88. Wells Fargo met expectations while Citigroup slightly missed.
Forex Implications
The positive earnings results support the dollar and ease some recession concerns. Bank management comments on the economic outlook and interest rate path will be closely watched. If bank CEOs express confidence about the economy, this could further boost the dollar. Any warnings about consumer weakness or credit deterioration could trigger risk aversion supporting safe haven currencies.