US GDP Up Next
Looking ahead to today’s US session, the main data focus will be on the release of advance US quarterly GDP for Q1. In light of the impact of surging inflation, supply-side issues, and the impact of COVID and the conflict in Ukraine, the market is widely expecting US GDP to have moderated over Q1. Economist estimates are centered around a 1.1% result, marking a sharp drop from the prior quarter’s bumper 6.9% reading. However, this should do little to deter the Fed from hiking by .5% when it meets in May. Indeed, if we see data beating estimates, this will likely create further near-term demand for USD heading into the May FOMC meeting next.
Where to Trade US Advance GDP?
NZDUSD
The sell of fin the Kiwi has seen price trading down to test below the current YTD lows at .6531. With price currently seeing decent support, sitting back atop the level for now, an upside surprise from today’s US GDP release would likely be enough to push the pair back below the level and down towards the .6450 and .6385 levels next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.