US GDP Up Next
Over today’s US session, the main data focus will be the release of final Q3 US GDP. The data is expected unchanged at 2.1%. However, amidst a rather quiet pre-Christmas trading week, and given the current stagnation in USD price action, we can always hope for a little action. A weaker than expected reading is unlikely to move the needle much given that the Fed has already pressed ahead with tapering and laid out its plans for next year. However, if we see an upward revision, this might be just the spark that’s needed to get the USD bull move back on track, endorsing hawkish Fed expectations and detracting some of the attention away from omicron fears.
Where to Trade US GDP?
USDJPY
USDJPY has been grinding higher off the 112.72 support base. In light of the longer term bull trend and with both MACD and RSI turning higher here, a solid US print today might prove enough to drive the next leg higher. Look for a break of 114.70, targeting 115.45 and 116.07 thereafter. The retail market is currently around 80% short, suggesting there is plenty of room for the current rally to develop further near term.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.