Robust U.S. GDP Stimulates Action Across The Majors
The U.S. GDP numbers are in above expectations and the markets are responding. The USD is posting significant rallies against the majors led by gains vs the Euro, British pound, and Canadian dollar. U.S. indices have opened slightly in the green as investors appear wary of Tuesday’s late-session selloff.
The Hard Data
Today’s GDP report supports commentary from the U.S. Federal Reserve (FED) earlier this month. Growth is on an upward trajectory and the stage is set for the FED to continue its stated policy of “gradual tightening.”
Here are this morning’s metrics:
Event Actual Projection Previous
Core Personal Consumption(Q4) 1.9% 1.9% 1.9%
GDP Annualized (Q4) 2.9% 2.7% 2.5%
GDP Price Index (Q4) 2.3% 2.3% 2.3%
The annualized GDP number came in at 2.9%, well up from industry projections of 2.7%. The gain over the previous release is sizable, at 0.4%. These numbers support the argument for accelerating economic growth and will undoubtedly be used to address inflationary concerns.
Overview
The action across the forex has been substantial following the economic release. Breakouts in the USD/CHF, EUR/USD, and GBP/USD have defined the session:
Pair Move
EUR/USD – 63 pips
GBP/USD – 54 pips
With several pairs currently trending, we should be in line for several trading opportunities today. Be sure to stay tuned and check out the signals page for ideas on how to become involved in the action.
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