Today’s trading webinar began with most dollar-denominated assets lower for the day, but within a mode of brief consolidation & correction ahead of this morning’s US Advanced Q2 GDP data.
For a good portion of the trading day, the greenback was the preferred currency to buy, and continued to show strength as a result of yesterday’s upbeat macro-economic data, with US Durable Goods Orders expanding by 2% m/m in June, which beat the market’s forecast of only a +0.7% m/m expansion. A majority of dollar-based assets were consolidating their gains in anticipation of the Advanced GDP reading, which reported a reading that was better than expected.
The US Advanced Q2 GDP surprised to the upside by reporting that the US economy grew by 2.1% in the second quarter and on an annualized basis, which was better than the 1.8% y/y growth that economists expected prior to the announcement. This announcement resulted in the US dollar moving marginally higher across the board, which also encouraged investors to soften their expectations of a strongly dovish FED during next week’s FOMC monetary policy meeting. The consensus among most traders is that the Federal Reserve will cut rates by 25 basis points on next week, but analysts still remain uncertain about the follow-up cuts later in the year.
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Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.