Dollar Will Have its Mettle Tested by GDP, USDJPY Eyeing Equities
• Yet another round of Fed officials reiterated their belief that a 2015 hike was probable
• The Dollar has gained as data and rhetoric builds hike speculation, but Friday's GDP carries decisiveness
• Euro gains flout discouraging Greek headlines and Yen crosses can be torn down by an equity reversal
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The Dollar's climb continued this past session as Fed members Williams and Bullard echoed the belief that a 2015 FOMC hike is probable. That contradicts what the market is projecting in Fed Fund futures and thereby presents speculative opportunity in fundamental disparity. We will see a key indicator attempt to reconcile the interest rate debate cross the wires today: the US GDP release. Though it is a revision versus a first read, the debate surrounding the economy's resilience to cold international winds will link easily to the rate discussion. Meanwhile, the Euro is proving a buoyant force in the face of increasingly troubling headlines for Greece while USDJPY hits 13 year highs despite the second biggest drop from China's benchmark equity index in nearly 6 years. We gauge where these themes will carry the market 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.