US Dollar May Rise if GDP Update Brings Fed Outlook Back in Focus

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TALKING POINTS – US DOLLAR, GDP, FED, CANADIAN DOLLAR, NAFTA

  • US Dollar could rise if Q2 GDP replace places Fed outlook again in focus
  • Forecasts put development at strongest in 4 years regardless of small downgrade
  • Canadian Dollar larger as hopes for NAFTA deal proceed to develop

The European financial calendar is conspicuously threadbare but once more, placing the highlight on revised second-quarter US GDP figures. The annualized financial development charge is anticipated to be adjusted a bit decrease, from 4.1 to 4 %.

The final result would nonetheless mark the strongest efficiency in 4 years, holding the case for continued Fed rate of interest hikes firmly intact. An enhance in September is all however absolutely priced in at this level and the chance of one other one in December now stands at 65.7 %.

In reality, the GDP print could remind buyers that the Fed stands alone amongst its G10 counterparts in the diploma of tightening it’s ready to ship by means of year-end and doubtless in 2019 as effectively. That could increase the US Dollar, which has struggled with the overlapping influence of policy- and risk-based cues lately.

The Canadian Dollar outperformed in in any other case muted Asia Pacific commerce. That follows a report type Globe and Mail suggesting Ottawa is able to make concessions in a bid to affix the renegotiated NAFTA commerce pact following a reported breakthrough in talks between the US and Mexico.

See our study on the history of trade wars to be taught the way it would possibly affect monetary markets!

ASIA PACIFIC TRADING SESSION

EUROPEAN TRADING SESSION

European Trading Session Economic Calendar

** All instances listed in GMT. See the full economic calendar here.

FX TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the feedback part beneath or @IlyaSpivak on Twitter



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