THE TAKEAWAY: US GDP misses revision estimates of 2.6% at 2.5%-> Initial Jobless Claims beat expectations of 325K at 305K-> USD Higher
Although GDP revisions missed estimates of 2.6%, the greenback was given a boost early in the US session with jobless claims coming in at 305K. Expectations had been a 325K print and this beat perpetuates improvements in the measure. Two weeks ago the print came in at 6 year lows and has finally returned to pre-crisis levels.
Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) (5-Minute Chart)
Source: FXCM Marketscope
The Dollar rose against most of the majors, most notably the Australian Dollar, following the print. Although some traders faded the move in the greenback, US equity futures held on to gains.
Volatility has been relatively light over the past week, but there is massive event risk ahead. For one, the delay by Congress to raise the debt ceiling may test the current complacency of the market with the S&P 500 and DJIA at all-time highs. This upcoming event risk surrounding the U.S. debt ceiling may have the potential to move markets as it did in 2011 if pushed to the last minute. Markets are not fond of uncertainty.
Event risk for the rest of the day:
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Gregory Marks, DailyFX Research Team
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