Dollar round up: Greenback back from highs as market priced in strong GDP
InvestingOnline.com
27/07/2018, 14:00The US dollar is trading down against its major rivals following US economic data that shows the GDP is growing at its fastest pace in the last four years. Numbers came as expected but the market expected Trump’s 5% growth.
Dollar index daily chart July 27
The US Dollar index fell 0.23% from 94.90 pre-data to current levels at 94.70. Experts believe that DXY sell-off will be temporary. The greenback is currently trading 0.07% down in the day at 94.70; logging its third negative day in the last four.
The US economy is growing at its fastest rate in four years as the GDP has risen 4.1% in the second quarter, in line of expectations and an upgrade to 2.2% posted in the previous quarter. First quarter data was revised up to 2.2% from previous 2.0%.
Robust consumer consumption is also positive and so are other components. Business investments rose by 7.3%; while experts advanced 9.3%, both upbeat figures. Most of that acceleration was due to consumption and exports.
EUR/USD up above 1.1640
EUR/USD ejected from 1.1620 right at the GDP release to trade above the 1.1650 area. The cross has now recovered earlier losses, and it is posting 0.10% gains so far today.
GBP/USD up following US Data
The British Pound is trading higher 0.08% on the day at 1.3120 as the GBP/USD bounced hard from intra-day lows at 1.3080 to break above 200-hours moving average at 1.3110. Cable is now testing intra-day high at 1.3120.
On the bigger chart, the GBP/USD needs to break above the 1.3210 level and then above the 1.3250 to start believing in a recovery. Above that, 1.3360 is the critical level to watch.
USD/JPY launched to daily lows
The USD/JPY failed to break above the 111.25 level right at the US GDP release as investors started selling dollars. The USD/JPY fell 0.30% from 111.25 to find support at 110.90.
The cross is now trading 0.20% negative at 111.00. If the pair gives up and goes below the 110.90, it will find next supports at 110.70 and 110.50.
AUD/USD jumps after US data
The Australian dollar is trading higher against its major counterpart after the US GDP. As AUD/USD was trading near to daily lows at 0.7370, the pair was propelled by the data and it was launched higher to test the 0.7400 level.
AUD/USD is currently trading 0.30% positive on the day at 0.7400. If the pair consolidates gains above there, it will find next resistances at 0.7460, where the 50-day moving average is moving, and the 0.7500.
