All eyes on dollar ahead of US GDP

Daily Analysis - 27/07/2018

Euro weak after dovish ECB  

us-gdp


The euro was sent back down below $1.17 after the ECB press conference on Thursday. The central bank’s President Mario Draghi offered nothing new for the markets during his press conference. The focus turns to US GDP data later today for the second quarter. The forecast is for a strong number of around 4.2 percent.

Euro lower on cautious ECB


EURUSD fell over 70 pips and is trading in the lower $1.16 handle as the ECB offered no positive surprises on policy and also failed to respond on the Trump – Juncker meeting. The ECB signaled no change in its timetable to move away from ultra low rates or end its bond purchase program and so the interest rate differentials between the ECB and the Federal Reserve is weighing on the euro/dollar pair.

popup_close
eurusdh1-5

Pound falls on Barnier Brexit rejection


Sterling weakened on news that EU chief negotiator Michel Barnier is rejecting the UK’s latest White Paper proposal on customs, saying "The EU cannot and the EU will not delegate the application of its customs policy, of its rules, VAT and excise duty collections to a non-member who would not be subject to the EU’s governance structures.”

popup_close
gbpusd-h1-9

US GDP optimism


There are expressions of optimism from the Trump Administration regarding today’s Q2 GDP release. A strong number will be positive for the dollar. However, trade war fears could dampen sentiment. Focus will be on the exports component of GDP. USDJPY is currently testing the key 111 yen level. The Dow Jones closed up over 100 points on Thursday at 25,527.

popup_close
dow-sep18-h1

Upcoming Events

  • Time
  • Currency
  • Event
  • Forecast
  • Previous
  • 12:30 GMT
  • USD
  • GDP (QoQ) (Q2)
  • 4.20%
  • 2.00%
  • 14:00 GMT
  • USD
  • Michigan Consumer Sentiment (Jul)
  • 97.1
  • 97.1
  • 17:00 GMT
  • USD
  • US Baker Hughes Oil Rig Count
  • 858

Risk Warning : CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money