CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Dollar correction starts to build in the wake of US GDP

Market Overview

The dollar broke out last week, but is a near term correction about to be seen? The move on trade weighted Dollar Index above 97.70 was a key move to levels not seen since mid-2017, but in the wake of last Friday’s blowout Advance GDP, this could be a time for taking profits (at least for now). GDP smashed expectations, but the huge beat to consensus expectations was riddled with one-offs which will impact negatively on future growth numbers. A huge swathe of inventory stockpiling bloated the number, whilst an improvement in the trade deficit comes from a big drop in imports (alluding to weaker consumption). Furthermore, muted inflation in the PCE Prices suggests that the Fed I right to have put a pin in the hiking cycle. There are hints now of a dollar correction, with rebounds coming in EUR/USD and Cable. Gold is also ticking higher. One major pair that could be somewhat unpredictable in the coming days is Dollar/Yen. The yen strengthened into the weekend as traders looked to close short positions ahead of a ten day national holiday in Japan. With reduced liquidity the pair could be spikey, especially in a week of heavy data and central bank decisions.

Dollar rally falling over

Wall Street closed back higher again on Friday with the S&P 500 +0.5% at 2940. With US futures ticking higher by +0.1% Asian markets are mildly positive (Shanghai Composite +0.5%). European markets are edging mildly higher in early moves with the FTSE futures +0.2% and DAX futures +0.1%. In forex,