The main currency pair is strengthening a little bit on Monday, but the intraday activity is quite weak.
The Eurodollar is growing on Monday on the “thin” exchange market with low activity. The most part of the European investors are still out as the Catholic Easter holidays continue. The current quote for the instrument is 1.1170.
There was no one to win back Friday’s statistics from the USA published at the end of the last week, but right now investors are starting to include them into prices. In the fourth quarter, the US GDP increased by 1.4% q/q against the expected number of 1.0% and the increase in the third quarter by 2%. On a year-on-year basis, the American economy increased by 2%.
Consumers and their expenses provide more serious support than it was expected. In the fourth quarter, the indicator increased by 2.4% against the predicted number of 2.0%. Consumer spendings provide the GDP of the country with more than a half of the entire growth, that’s why it’s difficult to overestimate the upward trend here. Consumer spendings increased by 3.1% over the last year. This is a very good result, now it’s essential to keep it.
The GDP report shows that the trading directions are becoming more balanced. So, for example, exports in the previous quarter decreased by just 2.0% against the expected number of 2.4%. Improvements in exports numbers are the result of relief of pressure on investment in inventory. Here, the statistics decreased, and, it probably affected the GDP numbers in the end.
However, the statistics is considered as positive and may provide more significant support to the US Dollar. We should wait for the market to respond tomorrow.
RoboForex Analytical Department
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