We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in US 500 are at opposite extremes with 71.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/m74wuZZKeH
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.42% Gold: -0.03% Oil - US Crude: -0.83% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4cYiwWIL4E
  • What financial job opportunity in which location makes the cut for you? Find out! https://t.co/rrCpMM85Rt https://t.co/4rS0V6FiEm
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.33% 🇦🇺AUD: 0.20% 🇨🇦CAD: -0.00% 🇪🇺EUR: -0.02% 🇯🇵JPY: -0.03% 🇬🇧GBP: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GOEvZ8H1yT
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.33% Germany 30: 0.31% FTSE 100: 0.29% US 500: -0.23% Wall Street: -0.44% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0oIElrc66l
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/afobcd9GRa https://t.co/bn3jPwlxks
  • Arizona virus cases rise 5.1% vs prior 4.7% 7-day average - BBG
  • The US Dollar is entering the third quarter with its safe haven status tested by rising COVID cases and trade pressures. What are the key USD catalysts in these opening weeks of July? Download the 3Q guide from @JohnKicklighter to find out here: https://t.co/z3dYpQYiJa https://t.co/Eh2Pd9YZq7
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.26% 🇦🇺AUD: 0.16% 🇪🇺EUR: 0.06% 🇯🇵JPY: 0.00% 🇬🇧GBP: -0.04% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/xEQQA9wfDe
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -0.37% Wall Street: -0.69% Germany 30: -0.84% France 40: -1.05% FTSE 100: -1.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8qMWUcY2fh
Upbeat U.S. GDP Report to Keep EURUSD Rate Under Pressure

Upbeat U.S. GDP Report to Keep EURUSD Rate Under Pressure

2019-04-26 11:00:00
David Song, Strategist
Share:

Trading the News: U.S. Gross Domestic Product (GDP)

Updates to the U.S. Gross Domestic Product (GDP) report may keep the EUR/USD exchange rate under pressure as the growth rate is expected to increase 2.3% after expanding 2.2% during the last three-months of 2018.

Image of DailyFX economic calendar

A pickup in economic activity should heighten the appeal of the U.S. dollar as it boosts the outlook for growth and inflation, and little to no signs of a looming recession may encourage the Federal Reserve to further normalize monetary policy in 2019 as ‘some participants indicated that if the economy evolved as they currently expected, with economic growth above its longer-run trend rate, they would likely judge it appropriate to raise the target range for the federal funds rate modestly later this year.’

In turn, a positive development may spark a bullish reaction in the greenback, but a batch of lackluster data prints may generate a mixed reaction especially as the core Personal Consumption Expenditure, the Fed’s preferred gauge for inflation, is expected to narrow to 1.4% from 1.8% during the same period.

Sign up and join DailyFX Currency Analyst David Song LIVEto cover the fresh updates to the U.S. GDP report.

Impact that the U.S. GDP report had on EUR/USD during the previous release

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

4Q A

2018

02/28/2019 13:30:00 GMT

2.2%

2.6%

-19

-35

4Q U.S. Gross Domestic Product (GDP)

EUR/USD 10-Minute Chart

Image of eurusd 10-minute chart

The advance U.S. Gross Domestic Product (GDP) report showed the economy growing 2.6% during the last three-months of 2018 after expanding 3.4% per annum during the previous period. A deeper look at the report showed the gauge for Personal Consumption increasing 2.8% versus projections for a 3.0% print, while the core Personal Consumption Expenditure (PCE), the Federal Reserve’s preferred gauge for inflation, unexpectedly climbed to 1.7% from 1.6% during the same period.

The U.S. dollar gained ground following the above-forecast GDP print, with EUR/USD slipping below the 1.1400 handle to close the day at 1.1371. Review the DailyFX Advanced Guide for Trading the News to learn our 8 step strategy.

EUR/USD Rate Daily Chart

Image of eurusd daily chart
  • There appears to be a broader shift in EUR/USD behavior as the exchange rate threatens the wedge/triangle formation from earlier this year, with the near-term outlook mired by the failed attempt to test the 1.1340 (38.2% expansion) hurdle.
  • At the same time, recent developments in the Relative Strength Index (RSI) offer a bearish signal as the oscillator snaps the upward trend from earlier this year.
  • In turn, the break/close below the 1.1190 (38.2% retracement) to 1.1220 (78.6% retracement) region brings the 1.1100 (78.6% expansion) to 1.1140 (78.6% expansion) zone on the radar, with the next area of interest coming in around 1.0950 (100% expansion) to 1.0980 (78.6% retracement).

For more in-depth analysis, check out the 2Q 2019 Forecast for EUR/USD

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide.

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.