Yesterday we saw some really good news from the US beginning with GDP data which improved from the earlier revised reading of 0.8% to 1.1% for the first quarter of the year. Many economists and analysts alike had predicted this past quarter to grow at 1.0%. The conference board also released the Consumer Confidence index which was printed at 98.0 up from 92.4-a revised figure recorded in may. Perhaps the only disappointment had to the real consumer spending which was revised to 1.5% from a consensus amongst economists at 2.0% but despite all these, the future economic conditions of the US remains strong and there is a slight recovery from the past 2-3 days slump and anxiety.
So this means one thing swings will be minimal in the coming months and days and we wait for any measures-legal and monetary policies from the UK which is guaranteed to cause volatility. Today we only watch for the Crude Oil inventories expected to be at -2.3M from last week’s -0.9M-this will be released at 1430 GMT+3 as usual.
To the charts:
There is a price reversal from the support trend line drawn from all the low points from January and will we anticipated price to trend even lower-it seems it has been taking the opposite direction but we still maintain our general outlook for a bearish swing.
This shall be validated only if there are reversals confirmed by a strong bullish candle closing above Monday’s gap at 0.712 but for now we maintain our short positions since the stochastics are swinging in the overbought region.