{"id":146750,"date":"2019-04-30T17:24:26","date_gmt":"2019-04-30T21:24:26","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=146750"},"modified":"2019-04-30T17:24:26","modified_gmt":"2019-04-30T21:24:26","slug":"strong-gdp-supports-the-us-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/strong-gdp-supports-the-us-dollar\/","title":{"rendered":"Strong GDP supports the US Dollar"},"content":{"rendered":"<div id=\"inves-1825739846\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">April 30, 2019<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h4>Summary<\/h4>\n<ul>\n<li>A strong 3.2% U.S first quarter GDP indicates robust economy.<\/li>\n<li>Temporary drivers of the growth however may not be sustainable for the remainder of the year.<\/li>\n<li>Strong U.S. economic data can continue to boost global stock market and U.S. Dollar in the short term.<\/li>\n<\/ul>\n<p>The U.S Commerce Department reported a strong first quarter GDP growth of 3.2% last week. This is the fastest figure since 2015 and put to rest the fear of recession. It also beat the expectation of over 2% growth by the economists. The GDP result was positive for the market causing global stock markets to rise. S&amp;P 500 registered another record closing high. The dollar fell against a basket of other currencies but could just take a breather after a strong rally since early 2019. After all, around the world, things are not looking as bright. Germany is barely growing and Japan is slumping.<\/p>\n<p><a class=\"cboxElement\" href=\"https:\/\/elliottwave-forecast.com\/wp-content\/uploads\/2019\/04\/US-GDP.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-792491 colorbox-792490\" title=\"Strong GDP supports the US Dollar\" src=\"https:\/\/elliottwave-forecast.com\/wp-content\/uploads\/2019\/04\/US-GDP.png\" alt=\"\" width=\"587\" height=\"388\" \/><\/a><\/p>\n<p>Source: Atlas with data from Bureau of Economic Analysis (BEA)<\/p>\n<p>However, not everything in the GDP report is rosy. The drivers of the growth primarily come from two sources: Smaller trade deficit and large inventory. Exports grew by 4%, but recent data indicates contraction in global trade. CPB Netherlands Bureau for Economic Policy Analysis reports the world trade momentum contracts by 1.9%, the sharpest contraction since 2009.<\/p>\n<p><a class=\"cboxElement\" href=\"https:\/\/elliottwave-forecast.com\/wp-content\/uploads\/2019\/04\/world-trade-momentum.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-792492 colorbox-792490\" title=\"Strong GDP supports the US Dollar\" src=\"https:\/\/elliottwave-forecast.com\/wp-content\/uploads\/2019\/04\/world-trade-momentum.png\" alt=\"\" width=\"910\" height=\"411\" \/><\/a><\/p>\n<p>Source: CPB<\/p>\n<h4>Strong GDP Number Support Global Market and US Dollar<\/h4>\n<p>This suggests that the export growth may be temporary and can\u2019t continue to boost the GDP number for the remainder of this year. The surge in inventory is yet another temporary factor which may not necessarily indicate a strong economy. Although a stock buildup can signal that companies expect future demands to increase, it can also signal sluggish demand as unsold inventory accumulates. Thus, the number doesn\u2019t really tell us the underlying strength of the economy.<\/p>\n<p>However, despite some of the underlying questions on the two elements, the GDP print reveals that the recession fear is overblown.\u00a0 Global stock markets responded favorably with S&amp;P 500 notching a new all-time high. The Dow Jones Industrial Average is also close to breaking out the previous 2018 high. With continued optimism and momentum buying, the rally in global markets can continue to extend in the short term. U.S. Dollar can also continue to outperform with the rest of the world market lagging.<\/p><div id=\"inves-3210208349\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<h4>USDCHF Daily Elliott Wave<\/h4>\n<p><a class=\"cboxElement\" href=\"https:\/\/elliottwave-forecast.com\/wp-content\/uploads\/2019\/04\/USDCHF-DAILY20190429100659.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-792494 colorbox-792490\" title=\"Strong GDP supports the US Dollar\" src=\"https:\/\/elliottwave-forecast.com\/wp-content\/uploads\/2019\/04\/USDCHF-DAILY20190429100659.jpg\" alt=\"Strong GDP supports the US Dollar\" width=\"1912\" height=\"981\" \/><\/a><\/p>\n<p>USDCHF Daily chart above shows that sequence from Feb 29, 2018 low remains incomplete with 100% target towards 1.043 \u2013 1.064 area. The pair shows a bullish sequence from 3 different cycles:<\/p>\n<ol>\n<li>February 19, 2018 low<\/li>\n<li>September 24, 2018 low<\/li>\n<li>January 10, 2019 low<\/li>\n<\/ol>\n<p>Additionally, the pair looks to have broken above the wedge-like pattern which has limited the rally for the past year. We expect the pair to continue finding support in dips in 3, 7, or 11 swing for further upside.<\/p>\n<p>&nbsp;<\/p>\n<p><em><strong>About the Author :<\/strong><\/em><\/p>\n<p><a href=\"https:\/\/elliottwave-forecast.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">ElliottWave-Forecast<\/a> has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 78 instruments including Forex, Commodities, Indices and a number of Stocks &amp; ETFs from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily &amp; Weekly Wave Counts. Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup, and Weekend videos.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Summary A strong 3.2% U.S first quarter GDP indicates robust economy. Temporary drivers of the growth however may not be sustainable for the remainder of the year. Strong U.S. economic data can continue to boost global stock market and U.S. Dollar in the short term. The U.S Commerce Department reported a strong first quarter GDP [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-146750","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146750","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=146750"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146750\/revisions"}],"predecessor-version":[{"id":146752,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146750\/revisions\/146752"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=146750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=146750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=146750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}