On a weekly basis the US Dollar made a rebound and appreciated against all major currency pairs, the only exception being the Canadian Dollar. On Friday 26th May 2017 a set of positive economic data was enough to send the USD Dollar higher, and this week plenty of new economic data will be presented to analyze it and could form new trends in the forex market.
On Friday 26th May 2017 we had the positive surprise or revised US GDP growth for 1st quarter 2017 with the reading at 1.2% better than expected 0.9%.
While the Gross Domestic Product Price Index for 1st quarter 2017 came at 2.2% versus 2.3% being the expectation, this is another indicator of inflation, and with a lower than expected reading it really shows no significant inflation signs so as to concern the Fed and raise interest rates soon in June, as expected. US Personal Consumption for 1st quarter also showed positive increase and surprise, while Durable Goods Orders came at better than expected reading, although showing a negative growth. As Durable Goods Orders are sensitive to economic output and expectation about economic growth this reading is also positive for the US Dollar.
Another important economic data, the University of Michigan Confidence reading came at 97.1 versus the expectation of 97.5, and while the previous reading was at 97.7 the small difference shows a stable trend above 97 reading, which is also supportive for the US Dollar.
The result of these positive economic news was the appreciation of the UD Dollar against almost all its major currency pairs.
We can again reason the fall of USD against the CAD to the rebound or oil prices, but the strengthening of JPY against the USD is surprising, and can partly be explained by some market reaction to the G7 Leaders meeting in Italy.
Important economic data for today Monday 29th May 2017
There are not any key economic data for today, only some fundamental news related to the Japanese economy and with the Bank Holiday in the USA, the market should show little volatility. But it is a week full of top important news, again US related with the US Nonfarm payrolls for May on Friday 2nd June 2017. The market will pay attention also to the commodities prices, and the British Pound as mentioned can show increased volatility as the Election Day on June 8th is approaching.Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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