EUR/USD continues fall ahead of US GDP

In anticipation of tomorrow’s US GDP figures, EUR/USD has continued yesterday’s fall.

Markets are expecting Thursday’s US quarterly GDP figures to fall for the first time in a year, anticipating a drop to 2.6%. Considering the particularly severe weather that the east coast of the country has suffered over the last three months, it would not be surprising for the economy to have suffered from the considerable disruption and for GDP figures to be lower.

Over the last couple of days we have seen the US dollar strengthen against a number of major currencies, specifically against the euro, as EUR/USD has dropped 100 pips down to the 1.3656. This sees it hovering just above the 50-day moving average and crossing below the midway point on a 10-day relative strength index chart.

Of course, before these events we will have both the Federal Reserve chair Janet Yellen speaking, at the Senate Banking committee hearing, and also fellow voting member Richard Fisher speaking in Germany. Both will be discussing banks specifically.

Spot FX EUR/USD chart

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