- July 27, 2018
- Posted by: Joey Benedid
- Category: Market News
President Trump spoke in Illinois yesterday and predicted that this morning’s GDP numbers were going to be terrific and show that the US economy is in good shape. Economists agree with the President, as expectations show 4.2% growth in annualized GDP – the strongest number shown in four years. Leading up to the GDP release at 8:30am EST, the Dollar Index is inching up in anticipation (+0.09%), while USDCAD continues to trade within yesterday’s range. The Dollar was also supported by trade talks with the EU yesterday where Trump and European Commission President Juncker agreed not impose auto tariffs while the two begin negotiations to reduce existing trade barriers.
EUR is soft on expectations of a USD rally and weaker than expected French GDP (1.7% vs 1.9%). GBP is down this morning as more bad news from the Brexit front emerges. The EU rejected a key component of May’s proposal to manage the country’s exit. The Chief Negotiator from the EU has suggested one way around the current stalemate would be for the UK to remain in the customs union, an idea that will not bode well with May’s Conservatives.
Short term support and resistance is at 1.2950 and 1.3170, with RSI at 55 and the 200-day moving average residing at 1.2812.