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Uncle Sam is printing a second GDP estimate this week!
Will it matter to forex traders?
Check out the potential catalysts you should keep an eye on.
Second GDP reading (May 28, 12:30 pm GMT)
- Initial Q1 2020 GDP reading showed the economy shrinking by 4.8%, the first negative reading since 2014 and the fastest decline since the 2008 financial crisis
- The dollar lost pips across the board except against the franc
- Analysts see the GDP being revised even LOWER to -5.2%
Domestic releases that might cause intraday trends
- CB consumer confidence (May 26, 2:00 pm GMT) to tick higher from 86.9 to 88.0 in May
- Weekly unemployment claims (May 28, 12:30 pm GMT) might add another 2.1 million new claimants this week
- Durable goods orders (May 28, 12:30 pm GMT) seen at -18.0 from -14.7 in March
- Core durable goods orders could plummet from -0.4 to -15.0 in April
- Pending home sales (May 28, 2:00 pm GMT) could see 15% drop after 20.8% crash in March
- Chicago PMI (May 29, 1:45 pm GMT) PMI to improve from 35.4 to 40.0?
Powell’s speech (May 29, 3:00 pm GMT)
- Fed Chairman Powell will talk economic policies in a virtual panel discussion
- Talks of a negative interest rate could weigh on the dollar
- Keep your eyes peeled for hints of further monetary or fiscal stimulus
Technical snapshot
- Stochastic is flagging USD’s “oversold” conditions against NZD
- The dollar could soon reach “overbought” territory against the yen
- 50 and 200 SMAs are pointing at the dollar’s weakening uptrends against the comdolls
- USD continues to be bullish against GBP and EUR
- The dollar was most volatile against the comdolls AND the euro in the last seven days
Missed last week’s price action? Read USD’s price recap for May 18 – 22!
