Article Summary:

Blogs about basic information in forex trading, forex participants and how to earn big in forex trading.This morning, the US Q4 GDP figures came in at a better than expected 5.7%, the fastest growth since 2003.  While this is seemingly good news for the US economy as it marks the 2nd straight quarter of growth providing further evidence that we moved forward from recession.
However,


Article Content:

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4



/* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:”"; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:”Times New Roman”; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi;}


This morning, the US Q4 GDP figures came in at a better than expected 5.7%, the fastest growth since 2003.  While this is seemingly good news for the US economy as it marks the 2nd straight quarter of growth providing further evidence that we moved forward from recession.

However, we’re not out of the woods just yet.  There are still global concerns weighing heavily upon the markets, such as the Greek debt problem in the Euro Zone, as well as China’s restrictions on lending.

This morning’s currency action is rather neutral, as it can’t be described as either risk-taking or risk-aversion.

Here’s how world currencies are trading this morning:

Aussie (AUD):  Gains in the Aussie have slowed down as the global slowdown, particularly in China, is expected to slow growth in Australia.  This morning is a mixed bag for the Aussie, as it’s higher vs. the Japanese yen and British pound, but down vs. the US dollar and Euro.

Kiwi (NZD): The Kiwi is trading higher across the board and is showing the highest percent gain vs. the yen this morning, up 1%.  They just reported a budget deficit for the first time in 9 years, as tax receipts have slowed and government spending picked up last year.

Loonie (CAD):  Canadian GDP came in this morning at .4%, a smidge higher than expectations.  Canada is showing slow but steady growth, which is a positive for the economy.  The Loonie has been weakening against the US dollar as global risk appetite has abated and oil prices are down almost this year. 

Euro (EUR):  The Euro is trading higher against the yen and the pound, but down against the rest this morning.  Consumer prices rose 1% showing that inflation is starting to pick up in the region.  Also to note is that fears over the Greek debt crisis are weakening as region considers all of its options. 

Pound (GBP):  The pound is down this morning against all but the yen, experiencing a technical pull back from its recent strength.  Housing prices were up the most in 5 months and consumer confidence is improving.  BOE policy-maker Andrew Sentance cautioned that the recovery can continue, “especially if interest rates remain low.”

Dollar (USD):   The dollar is showing strength today after the GDP figures that were reported this morning.  The fastest growth since 2003 is stoking thoughts that inflation may be closer than the Fed thinks. 

Yen (JPY):  The Japanese yen is down across the board today as the CPI index showed that deflation is still very prevalent in the Japanese economy.  Finance Minister Kan called for the Bank of Japan to take a powerful approach to combat falling prices and a strengthen yen. 

The stock markets closed down in Asia, but are currently higher in Europe and the US.   Gold is down slightly and oil is up this morning.

So today is a bit of a mixed bag.  Keep an eye on the correlations to watch for break-downs or irregularities to see if there are reversals or reversion to mean.  Today seems like it will be a range-bound day going into the weekend.

To learn more about how you can take advantage of world events through the currency market, be sure to check out our currency trading courses!

To follow these events live with a free, real-time practice account, click here!  Don’t miss out on the world’s fastest growing market!

 

none

———————