Global macro overview for 30/01/2017:
Worse-than-expected data from the US have disappointed market participants. The data from last Friday shown, that US economic growth had slowed down significantly. The Commerce Department reported the economy grew at an annualized pace of 1.9% in the three-month period to December, after expanding 3.5% in the Q3, while market participants expected the GDP to grow 2.2% in the fourth quarter. Moreover, the Durable Goods Orders dropped 0.4% on a monthly basis, while market participants expected a 2.7% increase. The main reason behind this large drop was weak orders for defense capital goods, which fell 33.4%, the largest monthly drop since May 2014. In conclusion, the for all the year 2016 the GDP growth was at the level of 1.6% and it was the weakest one since 2011. This is why the upcoming economic plans from President Trump are so much anticipated.
Let's now take a look at the US Dollar index technical picture in the H4 time frame. After making the higher low at the level of 99.78 the market bounced towards the next technical resistance at the level of 100.70, but it has not breached it yet. The uptrend is still intact (as long as the level of 99.41 is broken) and in order to continue to move the market higher, the bulls must break out above the golden trend line around the level of 101.25.
No comments:
Post a Comment