The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
US Final GDP will impact USD
What will happen?
The final US GDP will be out at 14:30 MT on March 25. The GDP growth is one of the most important economic indicators for any country and especially for the US. Therefore, traders pay a lot of attention to it. There are 3 versions of GDP released a month apart - Advance, Preliminary, and Final. This report is the third and the last one. The Preliminary report revealed the economic expansion of 4.1% in Q4 2020, slightly higher than the Advance one, which was 4%. In comparison with the 33.4% growth in the third quarter, the Q4 data, of course, wasn’t so encouraging. The continued increase in Covid-19 cases and social distancing restrictions pressed down consumer spending.
How to trade on US Final GDP?
Nothing is easier! Open our economic calendar at 14:30 MT on Thursday and follow the rule below.
- If the GDP growth is greater than the forecast, the USD will rise;
- Otherwise – fall.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…