The US Dollar and Crude Oil Will Dominate Trading today.
Thursday saw the U.S. Dollar lose ground against most of the major currencies. Whereas Crude Oil prices soared to commence Friday’s trading on a positive note.

Daily Forex Tips

The USD tumbled against such currencies as the EUR, GBP and CAD yesterday. This was due to a number of reasons, such as the forecast for today’s Advance GDP figures from the U.S. being significantly better than the previous results. Additionally, the global corporate earning results yesterday were far better than analysts predicted.

Crude Oil rose over 6% to above $67 a barrel on increased risk appetite, increased global optimism, a global rally in equities and commodities. Crude also benefited from the weak USD in Thursday’s trading.

09:00 GMT: EUR – CPI Flash Estimate

• The Consumer Price Index (CPI) is the change in the price of goods and services purchased by consumers.

• Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices can lead the European Central Bank (EUR) to raise Interest Rates.

• The CPI itself measures the changes in price of a fixed basket of consumer goods and services.

A positive CPI indicates price inflation, meaning that Interest Rates could rise, strengthening the EUR, while lower values can mean lower Interest Rates and a weaker EUR.

12:30 GMT: USD – Advance GDP

• Measures the change in the inflation-adjusted value of all goods and services produced by the economy.

• It’s the broadest measure of economic activity and the primary gauge of the economy’s health.

• The US advance GDP data always has a substantial impact on market sentiment, and this release should maintain the pattern.

• The data will be crucial in shaping near-term confidence, especially as it will have an important impact on risk appetite in the forex market.