Talking Points:
• The first reading of 1Q UK GDP is due Tuesday at 8:30 GMT
• While relative growth is a serious consideration with this data, the real impact is via rate expectations
• GBPUSD is virtually guaranteed a breakout, but pairs like GBPCAD and GBPAUD are better plays
Watch along as Christopher Vecchio covers the UK GDP release live in the DailyFX Live Trading Room and see what Breakout signals the DailyFX-Plus signals produce after the data.
The first stop in a week loaded with event risk will be the first quarter UK GDP release. With GBPUSD and other pound crosses facing clear breakout risk, traders are ready. This indicator is particularly important to general assessment of UK health, but market participants judge its importance not by academic influence. Market impact is what motivates the trader. And, in this release, we see an indicator that can shape volatile interest rate expectations as much as relative growth measures. Depending on the outcome of the data, the trade options are many. But high profile breakouts like GBPUSD may not prove as lucrative as lower tier setups from pairs like EURGBP, GBPAUD and GBPCAD. We look at this event risk and discuss its market impact in today's Strategy Video.
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