Trading Video: Dollar and S&P 500 Hit Fresh Highs on Strong GDP
• An unexpectedly strong revision to 3Q US GDP data charged both the DOllar and US equities
• As encouraging as the data is, it doesn't counteract the inevitable drain of liquidity
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Volatility is holding out to the very end while high-profile Dollar and S&P 500 drives have been pushed to even greater heights. This past session, the Greenback hit its highest level in nearly six years and the US equity benchmark marked yet another record. This is extraordinary considering the liquidity drain into the Christmas holiday season has already begun. A surprisingly sharp upgrade in the US 3Q GDP reading played a significant role in the bullish response for currency and capital market. Yet, the strong data showing still does not override the practicalities of the trading ranks thinning. Extremely few scenarios would see liquidity suddenly return to the market through the holiday, so the probabilities of momentum and trend development are equally improbable. What does that mean for EURUSD's break below 1.2200, GBPUSD's drop to a 15-month low and AUDUSD's extended bear trend? We discuss the short and medium-term prospects in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.