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USD/JPY trading signal - U.S. Final GDP Q1 - 28 Jun 2018

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Signal details
Entry Price: 
110.30
Close Price: 
110.49
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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The final revised estimates for the first quarter GDP covering the three months ending March 2018 will be released today at 13:30 GMT. According to the economists polled, no changes are expected as the U.S. economy is confirmed to have increased at a pace of 2.2% in the first quarter.

Compared to the fourth quarter of 2017, this marks a slower pace of increase in the economy, which was expected as the first quarter of the year is often a slow period. Still, at 2.2% increase, the data showed that the underlying momentum in the U.S. economy remained strong.

The data is unlikely to make much of an impact on the markets today considering that investors are already looking forward to the second quarter preliminary GDP numbers that will be released in a few weeks from now.

The U.S. economy is seemingly strong and is expected to post gains with the second quarter GDP expected to advance even at a higher rate compared to the first quarter gains.

Overall, no changes are expected with the quarterly GDP price index expected to remain unchanged at 1.9%. An unchanged first quarter GDP print will no doubt reinforce expectations of another rate hike from the Federal Reserve in September.

The central bank had indicated that there could be two more rate hikes for the remainder of the year, which is a slightly hawkish forecast compared to three rate hikes that was projected just until March this year.

Based on the above, today's trading signal is USDJPY, the major pair was seen extending gains on Tuesday but price action is trading near the resistance level of 110.20. We expect the USDJPY currency pair to reverse the gains near 110.20 to close lower on the day.

usdjpy trading signal 28 jun 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.