US GDP In Focus
The key data focus today will be on the release of US preliminary GDP for the third quarter. The US Dollar has been firmly in the spotlight over recent weeks amidst fluctuating Fed expectations and so today’s release holds the potential to cause plenty of market volatility. On the one hand, a strong reading here might embolden USD bulls once again, increasing expectations that the Fed is likely to taper in the coming months. However, should today’s data disappoint, this will likely confirm doves’ argument that the economy is not yet ready for removal of monetary easing, likely leading USD lower in the near term. The market is looking for 6.7% on today’s release, which would mark an increase on the prior quarter’s 6.5% reading. Looking through reports today, there is some chatter of a weak number being floated around which, if seen, could see USD trading firmly lower in the near term.
Where to Trade US GDP?
USDCAD
The recent failure above 1.2814 has seen USDCAD trading back down below the 1.2648 level to test the rising trend line from year to date lows. With both indicators turned negative here, a weak GDP reading today could send the pair down below the trend line, targeting the 1.2469 level next, ahead of deeper support at the 1.2368 region.
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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.