{"id":18798,"date":"2011-01-28T07:55:59","date_gmt":"2011-01-28T12:55:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=18798"},"modified":"2011-01-28T07:55:59","modified_gmt":"2011-01-28T12:55:59","slug":"choppy-market-expecting-usd-gains-after-fridays-gdp-report","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/01\/28\/choppy-market-expecting-usd-gains-after-fridays-gdp-report\/","title":{"rendered":"Choppy Market Expecting USD Gains after Friday\u2019s GDP Report"},"content":{"rendered":"

By Greg Holden<\/strong><\/p>\n

The events of this week have resulted in a rather sporadic and choppy trading environment.<\/p>\n

Dismal GDP figures<\/a> from Britain pushed harshly on sterling\u2019s recent strength. Meanwhile, President Obama\u2019s State of the Union address left many investors optimistic about broader tax overhauls and a possible reduction in corporate taxes, but speculators have already begun to anticipate Congressional gridlock instead of the cooperation necessary to undertake such measures.<\/p>\n

Following today\u2019s surprise jump in US unemployment claims<\/a>, the greenback\u2019s prices against the other major currencies appears uneasy. The EUR\/USD<\/a> was moving higher, breaching 1.3720 this morning, while the GBP\/USD<\/a> also rose towards 1.5980 before paring its recent gains and currently trading at 1.5955.<\/p>\n

Rising consumer confidence has helped lift risk appetite, leading many traders away from the greenback and precious metals and back into higher yielding assets such as the EUR and CHF. But many have stated that the recent rise of these riskier currencies was too rapid and a technical correction could be developing before the week\u2019s close.<\/p>\n

Tomorrow\u2019s Advance GDP<\/a> publication from the United States (13:30 GMT) represents the only remaining figure to carry a significant impact on the major currencies this week.<\/p>\n

The median estimate among the Market News International survey of economists is for a growth of 3.5%, but other forecasts range from 2.9% to 5.4%. Most investors are expecting a moderate level of growth in the US economy, in line with Obama\u2019s overtures towards economic recovery in his State of the Union address this week.<\/p>\n

It is possible that such a positive level of growth could signal another buy-in to American equities, pushing the USD higher in the short-run prior to the week\u2019s end. This would also support the notion of a technical correction to the recent downturn in dollar values against most other currencies.<\/p>\n

Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em><\/span>
\n<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Dismal GDP figures from Britain pushed harshly on sterling\u2019s recent strength. Meanwhile, President Obama\u2019s State of the Union address left many investors optimistic about broader tax overhauls and a possible reduction in corporate taxes…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-18798","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=18798"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/18798\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=18798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=18798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=18798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}