Can the Dollar Consolidate with GDP Figures?

Daily Update - 28th March 2018

Yesterday’s Market

• EUR Business Climate, Consumer Confidence
• US FOMC member Bostic Speech

Yesterday’s explained

The euro fell on Tuesday, as concerns about weak inflation and a slowdown in company borrowing raised questions about the momentum of the euro zone’s economic expansion. But have a chance to recover when high impact German data is released today and tomorrow. The EUR/USD is also being affected by a boost in the USD as tensions between the US and China over tariffs seem to cool off and risk appetite is coming back as Wall Street have seen a rebound since Monday.

The US Dollars has risen against the Euro yesterday, following reports that there talks to reduce the severity of US-China trade war. United States Secretary of the Treasury Steven Terner Mnuchin called Liu He the Chinese Vice Premier to discuss the trade deficit between the two countries and committed to continuing the dialogue to find a mutually agreeable way to reduce it.

 

Today’s Market

• EUR Consumer Confidence Survey
• US Gross Domestic Product AnnualizeD, Core Personal Consumption Expenditures

Today’s Focus

The EUR, GBP traders gear up for another light session ahead, with the German Gfk consumer climate figures due on the cards pre-Europe open. The Swiss Credit Suisse Economic Expectations and the UK CBI realized sales data will be reported later in the European session.

The main markets moving event for today is expected to be the US Q4 2017 GDP revision among other macro releases, including the goods trade balance, pending home sales and EIA crude inventories report. Meanwhile, the USD traders will also pay close attention to the speech by the Atlanta Fed President Bostic’s comments. Bostic is due to speak at the Atlanta Society of Finance and Investment Professionals luncheon.by updates from the U.S administration on progress or lack of progress on talks with China.

There is always the risk of the U.S. GDP figures due today being much weaker than expected, but major dollar-selling developments seem to have run their course for the time being

U.S. data due later in the day include the final estimate of fourth quarter gross domestic product and pending home sales.

With many traders betting on prolonged dollar weakness this year because of the United States' trade and budget deficits, and investors expecting to allocate more money to the euro zone as its economy strengthens, the single currency has performed well in 2018.