The USA GDP Data Supported the US Currency

According to the US Bureau of Economic Analysis, the country's economic growth in the first quarter of 2017 was 1.2% (year on year). Market expectations were at the level of 0.9%. The dollar index (#DX) finished trading on Friday in the positive zone (+0.19%). At the moment, the probability of an increase in the Fed interest rates in June is 83.1%. This week, the attention is focused on the report on the labor market in the United States.

On Thursday, May 25, OPEC decided to extend the agreement for reduction the oil production by 1.8 million barrels per day until the end of the first quarter of 2018. This event caused a sharp drop in the oil quotations. Participants of the financial markets were expecting a more large-scale reduction in production.

Today, the financial markets of the US, Britain, and China are closed due to holidays. One should expect a lower trading activity and volatility.

Market indicators

The US stock market (#SPY) is at its historical highs. On Friday, May 26, the trading ended at 241.71 USD

During recent trading sessions, the 10-year US government bonds yield shows a variety of trends. At the moment the indicator is at the level of 2.25%.

The dollar index (#DX) has fixed near the highs of last week.

It is necessary to pay attention to the following events:

  • – speech by the head of the ECB Draghi (16:00 GMT+3:00).

by JustForex, 2017.05.29

We recommend you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.