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Forex Today: Preliminary US GDP rises to 5.2% growth

Forex Today: Preliminary US GDP rises to 5.2% growth

Preliminary US GDP data released yesterday showed the US economy growing even faster than expected, with the annualized rate rising from 4.9% to 5.2%.

➡️ Preliminary US GDP data released yesterday beat expectations, with annualized growth coming in at 5.2% when 5.0% was widely expected. This briefly boosted U.S. stock markets, although major U.S. indexes gave up much of their gains by the end of the session. Yesterday the NASDAQ 100 index reached a new 22-month high. Trend traders and day traders will be interested in getting involved on the long side, with bulls getting a tailwind from lower-than-expected US inflation data recently.

➡️ They made a bullish breakout to a new 6-month high above $2,050 an ounce and threatens to reach its all-time high at around $2,070, attracting trend traders to the Long side. Its volatility is relatively low. The last few hours have seen bullish price action.

➡️ The US dollar's long-term bearish trend is the key factor in the Forex market, driven by the growing sense that the Federal Reserve has finished its current tightening cycle and will begin cutting rates. The US dollar index hit a 3-month low yesterday before gaining some ground. However, the dollar is falling in line with the trend again. Since Tokyo opened, the Australian dollar has been the strongest major currency, while the US dollar has been the weakest, putting you at the center of attention the AUD/USD currency pair.

➡️ The German preliminary CPI and the Spanish flash CPI both came in lower than expected yesterday, suggesting that inflationary pressures in developed economies are easing.

➡️ Bank of Japan board member Nakamura said the Bank will need more time before it can abandon its ultra-loose monetary policy.

➡️ Cocoa futures they continue to rise strongly and yesterday closed at a new multi-year high. This commodity will be very interesting for traders who follow bullish trends.

➡️ US Core PCE Price Index and Unemployment Claims data will be released later today.

 

Credit by DailyForex.com

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