Strong US GDP supported dollar

29 March, 2018

For two days, USD dollar looks stronger. Today, US currency continues to recover its positions on good statistical data. On the contrary, European currency has strengthened the decline and in general, euro is going through a weak day, approaching new support in the region of $ 1.2340. $1.2385 support level was broken in European session and the decline intensified after the release of positive figures for US fourth quarter GDP. The growth of US 2017 GDP for the fourth quarter was 2.9% instead of the expected 2.6%. The sale of pending houses increased by 3.1%, with 2.5% expectations. Such strong and positive data on the American economy has not been received for a long time.

The dollar is also within yesterday's range against the yen. USD / JPY completed the last week lower JPY105.30, but returned above this support since the moment of recovery on Monday.

Yesterday, the British pound surprised everyone with its volatility, given the lack of important news at the market. The attempt for further gains in the direction of 1.43 turned into a wave of sales, which is primarily due to technical issues.

On the contrary, the overall fundamental background for the British currency remains very positive. The statistical data published last week, as well as the decision of the Bank of England, raise expectations of an soon rate-hike in the country.

GBP/USD pair approached the highs of the year and tried to gain a foothold above the 1.42 mark. Traders began to consider this area as an area for partial profit taking on long positions at the end of the first quarter of 2018.

Today, American exchanges opened neutrally. The DOW and SP 500 indexes try to win back yesterday's losses, while sales in high-tech sector continue, putting pressure on the high-tech NASDAQ. It should be noted that the markets are oversold after yesterday's sale-off and any insignificant positive news can trigger the technical upward pullback. American statistics are also capable of supporting US stock markets today.

Oil prices recovered a part of their previous losses after the US Energy Information Administration reported that oil supplies rose by 1.6 million barrels in the week ending March 23.

 Analysts forecast an increase of 1 million barrels, while the American Petroleum Institute reported a jump of 5.3 million barrels. Gasoline stocks fell 3.5 million barrels per week, while distillate stocks fell by 2.1 million barrels, according to the EIA.


Source   Presented by Fort Financial Services
Traders expected to cash in on long positions9 Jul, 2020  

Markets continue to focus their attention on continued economic recovery and improved prospects for the long-term future, although there are still momentary...

Euro declines on the back of risk aversion30 Jun, 2020  

On Monday the 29th of June, trading on the euro closed up. The EURUSD pair rose by 0.22% to reach 1.1241. Trading on the US stock market closed up...

EURUSD holding steady below the balance line25 Jun, 2020  

Considering that our pair has dropped from 1.1349 to 1.1236 without any pullbacks, the current momentum should be enough to take it to the 112th degree...


EURUSD: bulls planning to test 1.130023 Jun, 2020  

On Monday the 22nd of June, trading on the euro closed up. The single currency rose to 1.1270 against the dollar. Investors seemed to have forgotten about...

Euro struggles against Dollar; Gold wobbles18 Jun, 2020  

The Euro remains trapped in a fierce battle against an unyielding Dollar with prices trading marginally below 1.1250 as of writing...

EURUSD: continued flat to around 1.130010 Jun, 2020  

The EURUSD pair was held up by the yen, which rose by 1.04% to reach 108.43 against the dollar. The yen is considered a safe haven asset, so investors...


EURUSD: markets await Lagarde speech5 Jun, 2020  

Trader attention is turned towards the ECB meeting and the following press conference with Christine Lagarde. Interest rates are expected to be maintained...

EURUSD: continued growth expected21 May, 2020  

The promising results of COVID-19 vaccine trials have reduced demand for the safe haven assets. The majors are trading up against the dollar...

EURUSD: expected rebound from the lower line14 May, 2020  

The pair rose to the balance line as expected. At the time of writing, the euro is trading at 1.0807. The majors are currently trading down...