Skip to content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
US Dollar, Gold, Silver Price Action - US Q4 GDP Matches Expectations

US Dollar, Gold, Silver Price Action - US Q4 GDP Matches Expectations

Justin McQueen, Strategist

US Dollar, Silver, Gold Price Analysis & News

  • US Q4 GDP Matches Expectations of 4%
  • US Economy Contracts For the First Time Since 2009, As Expected

BOTTOM LINE: The first look at US GDP in Q4 saw an increase of 4%, printing in line with expectations. However, while adding to the record mechanical increase in Q3, this was not enough to offset the 3.5% contraction for 2020. Therefore, marking the first time GDP has shrunk since 2009, when the US economy contracted by 2.5%. That said, while 2020 will be recorded as the worst year since 1946, with a vaccine rollout taking place accompanied by significant monetary and fiscal stimulus throughout the year, the outlook remains bright.

A Guide to GDP and Forex Trading

MARKET RESPONSE: The initial reaction had been muted with the data printing in line with expectations. However, at the time of writing the US Dollar has dipped slightly, while a notable bid has gone through the precious metals market with gold rise $15 to $1856, while silver has jumped from $25.30 to $26.15. I do not attribute this move to the US GDP report, but I am cognisant of the fact that we are approaching month-end and thus volatility across asset classes are likely to pick-up, particularly around the London fix. For more on the London fix, have a look at our trading guide.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Justin McQueen
Trading Forex News: The Strategy
Get My Guide

Gold, Silver and US Dollar Price Action

Source: Refinitiv

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

DISCLOSURES