Forex Signals Brief for May 30: US GDP Ahead
Rowan Crosby • 2 min read
Today all the attention is really on US GDP and it is arguably the biggest release of the week.
Economists are predicting that the US economy, grew at a 3.2% seasonally adjusted annual rate in the first quarter of this year. That would mark a jump from the previous quarter, where the economy grew at only 2.2%.
One of the big worries that were weighing on markets yesterday and of recent times, in general, has been the impact the US-China trade wars will have on GDP.
A recent model done by Bloomberg has been suggesting that if President Donald Trump puts tariffs on all Chinese goods and China continues to retaliate, the US and Chinese GDP could fall by 0.7% and 0.9%. Worrying signs for the world’s two leading economies and that’s why we are continuing to see weakness in risk assets such as the SPX and falling bond yields.
We also get Pending Home Sales out of the US today and then Crude Oil inventory later in the session.
Forex Signal Update
The FX Leaders Team finished with four wins from five signals in what was a strong performance from the guys.
AUD/USD – Active Signal
The AUD/USD has been holding this key support level really well at 0.6900 and so far has not shown any signs of breaking down. Given the fact, the USD rallied yesterday and the Aussie held strong, this makes me think there is a bit of potential upside here today and we are long looking for the quick bounce.
EUR/GBP – Active Signal
The EUR/GBP has been propped up recently thanks to the ongoing UK worries over Brexit which claimed the scalp of Theresa May. Now that price is above key resistance at 0.8800, there might be a further pop higher.
BTC has pulled back a touch since it tagged the $9,000 level earlier in the week.
The thing that is standing out to me most on the chart at the moment, is that despite price pulling back, it is a very shallow pullback.
We didn’t see a bit red candle or a big rejection. So to me, that is suggesting we still have some buying interest here. Of course, price could spike lower, but I am still maintaining my bullish stance for now until proven otherwise. That would be if price falls below resistance turned support at $8,000 as mentioned yesterday.