Market Spotlight: Trading US GDP & Jobless Claims
US GDP & Weekly Jobless Claims Due
The advance quarter-on-quarter USD GDP reading is due later today and will be the main data focus for the US session following the prior quarter’s 4.3% reading, the market is now looking for GDO to have expanded to 6.8% over the last quarter. With easing of restrictions over Q1 and with vaccination progress and fiscal stimulus having lifted sentiment and activity, there are upside risks in today’s data.
Similarly, the weekly jobless claims number is also expected to improve today from 547k last week to 545k. Again, with re-opening underway across America and with better optimism as a result of the ongoing vaccination effort, today’s reading could beat expectations. While the Fed was keen to stick to its message of caution regarding inflation, in acknowledging the improvement in the economy and the outlook, incoming positive data sets are likely to receive more attention and create more movement in the Dollar and USD-linked assets.
Where to Trade Today’s US Data?
USDJPY
The correction from the failed break above the bull channel top and bearish trend line from the 2018 highs has seen price reversing down to test the bull channel low, which held as support. Price has now moved back above the 108.39 level and while above here there is room for a continuation higher towards the 109.86 level and beyond.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 65% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.