- US Preliminary GDP data released yesterday exceeded expectations, with the annualized growth coming in at 5.2% when 5.0% was widely expected. This briefly boosted US stock markets, although major US indices gave up much of their gains by the end of the session. The NASDAQ 100 Index reached a new 22-month high price yesterday. Trend traders and day traders will be interested in being involved on the long side, with bulls getting a tailwind from lower-than-expected US inflation data recently.
- Gold has made a bullish breakout to a new 6-month high above $2,050 per ounce and is threatening to reach its all-time high at about $2,070, attracting trend traders on the long side. Its volatility is low relatively low. The past few hours have bullish price action.
- The long-term bearish trend in the US Dollar is the key driver in the Forex market, pushed by growing sentiment that the Federal Reserve has ended its current tightening cycle, and will begin to cut rates. Yesterday the US Dollar Index reached a 3-month low before gaining a little ground. However, the Dollar is now falling again in line with the trend. Since the Tokyo open, the Australian Dollar has been the strongest major currency, while the US Dollar has been the weakest, putting the AUD/USD currency pair in focus.
- German preliminary CPI and Spanish Flash CPI both came in yesterday lower than expected, suggesting inflationary pressures in developed economies are receding.
- Bank of Japan Board Member Nakamura stated that the Bank will need more time before it will be able to move away from its ultra-loose monetary policy.
- Cocoa futures are continuing to rise strongly and closed yesterday at a new multi-year high. This commodity will be very interesting to trend traders on the long side.
- There will be releases later today of US Core PCE Price Index data and Unemployment Claims.
Forex Today: US Preliminary GDP Rises to 5.2% Growth
Adam Lemon
US Preliminary GDP data released yesterday showed the US economy growing even faster than had been expected, with the annualized rate increasing from 4.9% to 5.2%.