US Market Wrap: US GDP fails to stem dollar's slide
- Nothing ahead
US Data released
- Q3 GDP (Actual 2.0% vs. forecast 1.9%, annualised)
- Q3 Core PCE (Actual 1.4% vs. Forecast 1.3%)
- Existing Home Sales change (Actual -10.5% vs. forecast 0.0%)
This morning's US Q3 GDP data failed to have any noticeable impact on FX markets. Instead, traders stuck to yesterday’s theme of selling dollars. That shouldn’t really be much of a surprise. Long dollar positions are still plentiful and there is nothing on the horizon that suggests a return to US dollar buying any time soon. GBPUSD defied the trend and was sold, triggering stops on the break of 1.4860.
Oil prices bounced in what what was likely a bit of profit-taking after touching 11-year lows yesterday. As bounces go, it wasn’t much of one. The WTI rally from $35.66/barrel petered out at $37.17/b and prices dropped back down to close at $36.18/b.
Opinion: Saxo Bank’s John Hardy provides some insight on Cable’s drop in : FX Board: Sterling slides as euro, yen surge
-- Edited by Adam Courtenay
Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.
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