A strong first quarter GDP reading sparked speculation the Fed won't tilt toward sooner rate hikes but a mostly dovish Yellen cut the US dollar's wings. Still, USD was the top performer on the day while the yen lagged. Look for markets to continue digesting the news while keeping an eye out for an Argentine default. In our latest Premium Insights
, AUDNZD and NZDUSD hit their final targets, while USDJPY was stopped out. EURUSD and USDCHF nearing their final targets, while EURJPY and GBPUSD remain in progress. All details are in the Premium Insights
New York traders filled the thermos with coffee ahead of a busy day that started with ADP employment. The report added little to the debate at 218K compared to 230K expected. It was a small miss but close enough to expectations to keep the good news on the jobs front intact.
The surprise came shortly afterward when the first reading on Q2 US GDP was +4.0% compared to 3.0% expected. Q1 was also revised to 2.1% from 2.9%. There were some caveats in the report including a large build in inventories but the overall picture was strong and the US dollar climbed 30-80 pips across the board.