USD PRICE OUTLOOK: US DOLLAR AIMING HIGHER INTO MONTH END BUT GIVES BACK SOME GAINS AFTER 2Q GDP REPORT
- USD[1] price action on the offensive headed into month-end but fading after US GDP data
- 2Q US GDP report printed a jaw-dropping 32.9% collapse in economic activity
- US Dollar[2] is down over 4% for July and the recent bearish trend may continue
The broader US Dollar has declined well over 4% throughout July judging by performance of the DXY Index, but the popular basket of major currency pairs[3] was attempting to claw back some downside early during Thursday’s trading session with month-end upon us. A short-lived relief bounce in the Greenback looks like it is reverting back lower as USD price action reacts negatively to 2Q-2020 US GDP data that just crossed the wires.
2Q-2020 US GDP REPORT PRINTS HISTORIC COLLAPSE IN ECONOMIC ACTIVITY DUE TO COVID-19
Chart Source: DailyFX Economic Calendar[4]
Amid the coronavirus lockdown that paralyzed the global economy for several weeks during the second quarter, the United States just reported a 32.9% contraction in quarterly GDP growth, though the staggering collapse was largely expected.
EUR/USD PRICE CHART: 1-MINUTE TIME FRAME (30 JULY 2020 INTRADAY)
EUR/USD[5] price action has slid since piercing the 1.1800-price level in the wake of yesterday’s FOMC[6] decision. That said, spot EUR[7]/USD just turned positive on the day following the release of US GDP data and may look to continue its recent bullish trend as US Dollar weakness prevails[8].
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https://www.dailyfx.com/economic-calendar/?ref-author=Dvorak
