THE TAKEAWAY: Negative UK GDP growth in Q1 2012 -> Sterling under pressure as data diminishes confidence Great Britain’s Gross Domestic Product contracted in the first quarter, pushing the UK into its first double-dip recession since the 1970s. The report is expected to increase pressure on UK officials, most important PM David Cameron who has faced criticism for promoting austerity instead of government stimulus.
The EURGBP continues to have a strong April moving steadily in a downtrend. Through today’s trading, the pair has moved as much as 214 pips lower from its monthly high at .8357.
Dollar: Fed Forecasts and 1Q GDP Promising Breakout Catalysts British Pound will Put Modest Hawkish Upgrade to the Growth Test Australian Dollar Traders Have a Clear Expectation for Tuesday’s CPI New Zealand Dollar Measured its Reaction to Inflation, How About the RBNZ? Euro Traders Should Watch French Election, IMF Response and Crisis Headlines Japanese Yen Not Seen as a High-Level Volatility Risk, Good Setup for the BoJ Gold May Finally
The greenback is weaker against all its major counterparts save the yen amid a rebound in broader market sentiment. Here are the setups we will be trading on USDCHF and USDJPY. Daily Winners and Losers The Swiss franc is the strongest performer against a weaker greenback with an advance of 0.65% ahead of the European close. Market sentiment is well supported with equities and Treasury yields rallying on stronger than
The greenback threatened its bullish trend on Friday as the Dow Jones-FXCM U.S. Dollar Index tumbled to a fresh weekly low of 9,913, but the reserve currency may snap back going into May should the Fed continue to soften its dovish tone for monetary policy.
