UK GDP Leaves Pound Coiled, Dollar Awaits Its Own GDP Spark
• UK GDP carried serious volatility potential for the Pound, but an in-line report disarmed key setups
• The 4Q US GDP report is Friday's top event risk with the Greenback and 'risk' looking for motivation
High-level event risk like this past session's UK GDP release can generate offer the drive necessary to force major breakouts and even carry meaningful trends. But only if the data requires speculative repositioning. For this growth report, an in-line reading disarmed trade opportunities in a range of Pound crosses - I was partial to GBPCAD and GBPNZD. While these technical constraints will eventually break, the circumstances for when and how are now more vague. One Sterling cross may have clearer lines to it however: GBPUSD. Top event risk through the final session of the week is the US 4Q GDP reading which can tap into building rate speculation behind the Fed. Meanwhile, risk trends are settling into a suspiciously comfortable pattern and commodities are increasingly reactive to news on production. We discuss all of this and more 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.