Sep 28 – Economic Events Outlook – Dollar Strengthens, GDP Figures Up Next - Forex News by FX Leaders

Sep 28 – Economic Events Outlook – Dollar Strengthens, GDP Figures Up Next

Posted Friday, September 28, 2018 by
Arslan Butt • 2 min read

Happy Friday, traders.

The Greenback remains firm against its peers on Friday after macroeconomic data strengthened upbeat views about the US economy and backed the Federal Reserve’s sign for a steady sequence of rate increases over the next year.

The US gross domestic product rose at a 4.2% in the second quarter, the fastest in nearly four years. Meanwhile, the durable goods grew 4.5% in August, rebounding from a revised 1.2% fall the month before.

Today, investors’ focus remains on the GDP figures from the United Kingdom, Canada, and Eurozone. Let’s dig deeper…

Watchlist – Key Economic Events Today

EUR – CPI Flash Estimate y/y 

The Eurostat is in highlights for European CPI data. Inflation figures are forecast to rise at 2.1% rate, beating 2% rate previously. Historically, higher inflation figures extend bullish support to the currencies.

GBP – Current Account

The Office for National Statistics is expected to release the current account at 8:30 (GMT). It’s a difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter. Figures are expected to show a trade deficit of 19.4 billion vs. 17.7 billion in June 2018.

GBP – Final GDP q/q

The Office for National Statistics is expected to release the GDP figure at 8:30 (GMT). The GDP (gross domestic product) is expected to remain unchanged at 0.4% vs. 0.4% in the previous quarter.

However, considering the recent jump in UK’s Inflation figures from 2.5% to 2.7%, can we expect echoes in GDP? Well, we should be ready for it. On the release of positive news, Sterling can stay bullish as the BOE (Bank of England) will be expected to keep a hawkish tone in its monetary policy meetings.

CAD – GDP m/m

Likewise, the Statistics Canada is due to release the gross domestic product at 12:30 (GMT). Traders, it will be really interesting to see how recent tariffs from the US have impacted Canadian productivity. Economists expectation is 0.1% up from 0.0%. It’s likely to support the Loonie at least until the release of new

USD – Chicago PMI

ISM-Chicago, Inc will release the figure at 13:45 (GMT). It’s forecast to drop from 63.6 to 62.3. To all the fundamental traders, it won’t be a good idea to trade this news as the Chicago PMI is given to MNI subscribers 3 minutes before the public release time listed on the calendar. The market moves price on the actual news release before it’s even out for you. So, it’s hard to make money over this. 

Good luck today and have an awesome weekend.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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