USD can’t make headway after US GDP data
114.40 is the high so far after the GDP numbers. The market was calmed it wasn’t a weather related disappointment but that doesn’t mean they like everything in the report. We’ve pretty much split the difference in those highs from May and July and now we’re failing to stay above the May high after breaking it on the data.
As always, US Treasuires aren’t far from the action and 10’s have dipped from 2.48% to 2.46%. We may not have seen the end of the moves though as we’re into a big area of options in the 114’s.
The data doesn’t bring any negatives into Fed expectations, if anything the prices data recovering gives the Fed some comfort, although this is old data. The buck should remain well supported for now, unles we get any really stinky numbers from the big data next week, and that includes the ISM and payrolls.
Elsewhere, EURUSD has ducked under 1.1600 to 1.1585, a support area I highlighted earlier. Abreak there and we could be in for more trouble. GBPUSD is relatively stable, all things considered. It didn’t test the morning’s lows at 1.3070 over the data so that suggests some decent support is sitting there, and some has stepped up to the 1.3075/80 level.
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