This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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.