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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
Gold
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
Bullish
Bitcoin
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
  • What is #forex risk management? As a trader why is it important to know the basics of it? https://t.co/zndCrZlnqE #tradingstyle https://t.co/qFChCgr41P
  • RT @onlyyoontv: Watching #HongKong elections Sunday. 4mln ppl hit polls. Seen as referendum on pro-democracy movement. Security tight. Fear…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in France 40 are at opposite extremes with 79.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/MsDN4XgJAR
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr https://t.co/soLloKxMYl
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.65% Gold: 0.51% Oil - US Crude: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/t2PxpO1HEm
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.16% 🇯🇵JPY: 0.13% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.06% 🇪🇺EUR: -0.06% 🇬🇧GBP: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/iI1uVqA6M3
  • Gold Price: Signals to Break the Deadlock - XAU/USD Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2019/11/22/Gold-Price-Signal-to-Break-the-Deadlock-XAUUSD-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/0pz8KRXUxG
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: US 500: 0.21% Wall Street: 0.19% France 40: 0.14% Germany 30: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/b315HhEW59
  • Crptos getting really ugly...Bitcoin trades with a 6-handle... #btc #eth #bch #xrp @DailyFX Latest prices from @IGcom https://t.co/aRrOWqrklw
  • LIVE NOW! Currency Strategist @PaulRobinsonFX runs through his favorite charts and potential set-ups for the week ahead in the FX and CFDs market here - https://www.dailyfx.com/webinars/108721147?CHID=9&QPID=917720
US Dollar May Rise if US GDP Data Reinforces Recession Fears

US Dollar May Rise if US GDP Data Reinforces Recession Fears

2019-08-29 06:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

US Dollar, US GDP, Euro – TALKING POINTS

  • US Dollar may rise if US GDP data spooks markets, drives traders to anti-risk assets
  • A worse-than-expected outcome may also increase expectations of stimulus from Fed
  • NOK traders brace for publication of Q2 growth data as global demand deteriorates

Learn how to use political-risk analysis in your trading strategy!

Today brings forth a heavy economic docket with US Q2 GDP data likely to be the headline event risk for the session. Similar data out of Brazil, France and Norway will also be published. If US growth reports undershoot expectations, it could reinforce growing recession fears and inspire liquidation in risk-on assets as traders redirect capital to haven-linked instruments like the US Dollar and Treasuries.

On an annualized quarter-on-quarter basis, US GDP data is expected to show a 2.0 percent growth rate, slightly lower than the previous 2.2 percent print. At the Jackson Hole symposium, Fed Chairman Jerome Powell said the growth outlook has “deteriorated” amid the ongoing US-China trade war. SF Fed President Mary Daly recently pointed to weakening inflation expectations and expressed concern about rising corporate debt.

Be sure to follow me on Twitter @ZabelinDimitri for more in-depth analysis of Fed commentary!

The Fed’s approach to policy remains in a wait-and-see mode, though mounting rate cut bets suggest market participants are expecting for the Fed to deliver more stimulus than they have conveyed they would. Brewing storm clouds from abroad – like Europe – have also contributed to the negative growth outlook and has put investors on high alert. Amid the uncertainty, the US Dollar and Treasuries continue to see high capital inflow.

NOK traders will also be closely watching the publication of Norway’s GDP data. Over a quarter-on-quarter timeframe, economists are expecting a growth rate of 0.5 percent, a relatively reliving forecast after the economy shrunk 0.1 percent in Q1. The export-driven economy continues to face pressure as regional demand out of Europe – its main trading partner – continues to fall against the backdrop of fragile Brexit developments.

CHART OF THE DAY: US Dollar Index Rises with Fed Rate Bets as Yields on German Bunds, Treasuries Fall

Chart showign US Dollar

USD chart created using TradingView

USD TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.