US GDP Sends the Dollar Higher but It Still Has to Gather Momentum in Big Charts
Skerdian Meta • 1 min read
The second estimate for the US Q2 GDP report came out as expected at 3.3%. In fact, some websites had a 3.2% number as expectation. Well, whatever the expectations, this was a decent reading and the USD is feeling the positivity already.
This is a good report because it takes this year’s GDP above 3% which has been the aim of the FED. Now the FED has one less reason to worry about the US economy and continue with the monetary tightening.
US GDP turns higher again
That’s what the market is thinking right now, hence the jump in the USD immediately after the release. The USD is reversing on the bigger timeframe charts and the pieces of the puzzle are falling in line for USD bulls.
Trump’s tax plan is sort of on the way, the next FED chairman won’t be too tough on regulation according to some and now the economy seems to have gathered some good momentum. Although, the climb has stopped now and a retrace lower might be due soon.
After all, the sentiment doesn’t change in a heartbeat. It will take some time for the USD to gather momentum on the large timeframe charts. We will be looking at it though, so we are not left out of the big USD rally which I think will come sooner or later after a year of decline.