Yesterday's GDP data came in better than expected, showing that although the greatest economy on Earth is still contracting, it's doing so at a slower rate:
GMT 12:30 PM USD Gross Domestic Product (Annualized) (2Q F)
-0.7% (actual) -1.2% (expected) -1.0% (previous month)
This morning's jobless claims numbers was basically a wash, coming in as expected, however, pending home sales for the month blew expectations out of the water:
GMT 14:00 PM USD Pending Home Sales (MoM) (AUG)
6.4% (actual) 1.0% (expected) 3.2% (previous month)
6.4% (actual) 1.0% (expected) 3.2% (previous month)
Tomorrow is the all-important NFP and Unemployment Rate figures, probably the single biggest market-moving data of the month. There are modest expectations going into tomorrow, so the stage is set for a potential nice surprise.
The USD/JPY showed a reversal bar off the daily chart this past Monday (highlighted in the chart shown). This is a good level to get in, ahead of the NFP report tomorrow, in anticipation of a potential reversal. Support lies at the 88 level, making for approximately a 150 pip risk trade. If the reversal takes place, USD/JPY can easily go up to the 92-93.50 level, creating a very favorable risk/reward bet.
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