Check out the brand new DailyFX trading forecasts[1] for Q3
MARKET DEVELOPMENTS – US GDP SURPASSES 4% FOR FIRST TIME SINCE Q3 2014
US equity futures are set to close the week in the green (DJIA flat, Nasdaq[2] 100 0.6%, S&P 500[3] 0.2%) with the bourses supported by firm earnings from the likes of Amazon. Elsewhere, US GDP for Q2 rose above 4% for the first time since Q3 2014.
USD:Buy the rumour, sell the fact. This was the price action observed in the USD[4] index this morning with the USD notably firmer in the run up to today’s GDP report, particularly due to the fact that reports had touted a reading around 4.8%. However, the figure had printed at 4.1% below expectations of 4.2%, consequently, the Dollar pared earlier gains.
EUR[5]: This morning participants digested the latest French GDP data for the second quarter, in which both the Q/Q and Y/Y readings underwhelmed expectations due to a series of strikes in the Euro Area’s second largest economy. This is the first published Q2 GDP estimate for a Eurozone economy and it points to downside risks for the data[6] for the region as a whole due next week. The continued sluggishness in France also comes at a period of uncertainty marked by the global trade tensions.EURUSD[7] continues to trade within its 1.1850-1.1580 range with no signs of a break-out.
JPY[8]: Ahead of next week’s BoJ meeting, the Japanese Yen is trading at better levels with USDJPY[9] below 111.00 as participants speculate that the BoJ could potentially tweak monetary policy. As
