Revised GDP showed growth by 1.6% y/y on Friday. The data came out to be slightly above the expected, but worse, compared to the data for the previous period which totaled 2.4%. On the whole, we now observe negative dynamics, bringing about anxiety over future economic recovery. The data initiated growth of stock indices in a short-term, which allowed usd/jpy pair to fix above 85. As for the eur/usd, it shows insignificant growth to the safe support level 1.2780, mentioned previously, thus discharging RSI in a 4-hour time frame.

Personal consumption expenditures in the United States is of the most interest today. It is expected with a growth from 0.0% to 0.1% this month. Personal expenses in the US are likely to increase from 0 to 0.3% m/m. In general, released data will probably strengthen the dollar against the euro and the pound. But we should mostly rely on the second part of the week. FOMC report is released on Wednesday, short-term ECB interest rate is announced on Thursday and non-farm payrolls in the US come out on Friday.

Analysis prepared by:

Maxim Dmitrievsky
Forex4you analyst