Special GDP Event
The U.S. GDP data for the second quarter is expected this week on 27 August 2015, 12:30 GMT, and the UK GDP data will follow on Friday 28 August, 08:30 GMT. Both events are of extreme importance since a huge shift in fundamentals is triggering high volatility on the market. Trading opportunities will be created, do not miss this!
The Gross Domestic Product (GDP) is a data set to measure changes in value of goods and services produced by the economy. This can be done on an annual or quarterly basis. The data is an extremely important economic indicator as it will also indicate whether the current economic activity and health is stable.
Being that, this data is special enough to create buzz on the market, thus, verification of market trends becomes important. However, it is good to note that the dollar has regressed from earlier gains and has broken support level of many months. A rally of currencies is dominating the markets due to changes in Fundamentals.
By the side of UK, the British pound had been quite optimistic after the elections held in May. The Pound had stayed strong against the dollar for quite a long time and even now with the fall of the dollar, the UK currency is trying to hold on to current gains. The UK GDP will also indicate whether the economy is stable at the moment or the current global instability will reach to the UK.
There might be reversal trends due to the U.S. and UK GDP. The U.S. GDP data might help the dollar bounce back from recent losses which might also take Gold higher or lower depending on the strength of the dollar. The same might occur for crude oil and other key currencies. Trading is recommended in the first 15 to 30 minutes following the release of the GDP data.