How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
GDP Release Scares the Dollar
What will happen?
United States Bureau of Economic Analysis will release Gross Domestic Product (Advance GDP) on April 28, 15:30 GMT+3. It's the broadest measure of economic activity and the primary gauge of the economy's health. Estimates of GDP are released on a monthly and quarterly basis. Quarterly ones tend to have the most impact as they collect the data from more extensive periods.
Why is it important?
GDP reflects a change in the inflation-adjusted value of all goods and services produced by the economy. Thus, bigger-than-expected (or just huge) numbers tell us about economic growth. Last release exceeded expectations by 1.6% (6.9% actual vs 5.3% forecast). After the reading came out, USDCAD gained almost 1000 points till the end of the trading session. Thus, you'll have plenty of time to plan and execute your trades.
How to trade in US GDP release?
The market takes higher-than-expected numbers positively for the USD, while an opposite reading is bearish for the currency.
- If actual numbers beat expectations – the USD will rise.
- Otherwise, fall.
Check the economic calendar
Instruments to trade: EURUSD, USDCAD, USDJPY.
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