Keep Your Powder Dry Ahead Of NFP
The headline US GDP was a much larger pill to swallow than expected, the Fed announcement was anti-climatic, the Kiwi's surprised by being less hawkish and now we find out that Europe's backbone, Germany, is not on ‘sure' footing. You have just heard the 24-hours in the life of an FX trader. The toil for all their efforts was to see the ‘single currency' (the EUR is the most popular currency by choice to trade) cower within a 25-pip range.
Perhaps it's more prudent to say that investors are weighing up the recent downbeat US economic growth alongside decent expectations for tomorrows non-farm payroll report before wholly committing to ply their trade. This is certainly one way to explain the lack of excitement in the forex markets. Mid-week's better than expected private sector jobs report has increased markets expectations for a solid NFP report (+175k and +7.8% unemployment rate).
Yesterday's US GDP report was weaker than expected, declining ...
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