Daily FX Trading Update: US Q3 GDP Revised Higher – Nov 26, 2014

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Daily FX Trading Update: US Q3 GDP Revised Higher - Nov 26, 2014

The US dollar barely benefitted from the upgraded Q3 GDP reading from 3.5% to 3.9%, as FX trading pairs seemed to react to risk appetite. Components of the report showed that the upgrade was a result of strong consumer spending data and a pickup in business investment. Weaker CB consumer confidence also prevented the dollar from extending its gains, as the reading fell from 94.1 to 88.7 instead of improving to the estimated 95.9 figure. For today, US durable goods orders data is up for release, along with the core PCE price index.

The euro advanced to most of its FX trading counterparts, as there were no bleak reports from the euro zone. Germany’s final GDP reading was unchanged at 0.1% while Italian retail sales came in slightly weaker than expected at a 0.1% decline versus the projected 0.2% increase. Data on German import prices is up for release today and a 0.3% decline is expected.

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The pound struggled to hold on to its recent FX trading wins yesterday, despite weaker than expected BBA mortgage approvals data and downbeat U.K. inflation hearings. BOE Governor Carney mentioned that the U.K.’s economic prospects might be weighed down by global economic weakness and geopolitical tensions. For today, the second estimate of the U.K. GDP is due and no change is expected from the previous 0.7% figure.

The franc continued its FX trading advance to the dollar and consolidation to the euro since there were no major reports released from Switzerland recently. For today, the UBS consumption indicator is due and an improvement from the previous 1.41 reading might lead to an extended franc rally.

The yen put up a strong fight in recent FX trading, as it advanced to most of its forex counterparts. BOJ minutes indicated that policymakers are worried that the impact of the latest round of easing might not be as strong as it was before. There are no reports up for release from Japan today, leaving yen pairs at the mercy of risk sentiment.

The comdolls had a mixed performance, with the Australian dollar falling sharply and the Kiwi and Loonie raking in a few gains. Canada’s retail sales report came in mixed, with the core figure staying flat instead of showing the projected 0.4% uptick and the headline figure marking a 0.8% increase. Earlier today, Australia’s construction work done for the third quarter saw a 2.2% decline versus the projected 1.7% drop and the previous 1.2% decrease. There are no reports due from the comdoll economies for the rest of the day.

To contact the reporter of the story: James Brennan at james@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.