Forex Market Majors Advance on Strong U.S. GDP

  • Euro and GBP Both Strengthen on Optimism
  • Country Ready to Get Back to Work
  • Markets Hit New Highs on Impressive Big Tech

The day has started with a positive push from both the EUR and GBP against the Dollar as optimism among those trading the forex market takes over. This positive sentiment has been backed by impressive US GDP numbers that indicate the country has begun to get back to work at a quickened pace. At the same time, markets on Wall Street continue their very positive week with the big tech names Apple and Facebook seeing massive revenue jumps and driving the indices to record highs.

Monthly High for Forex Majors

Starting with the Euro, it traded at a monthly high of close to 1.215 against the Dollar. This momentum has been strongly supported by the US GDP beat which came in at a preliminary 6.4% and ahead of analyst expectations by 0.3%. Positive European news from German inflation figures and economic sentiment in the bloc have also contributed to a more risk-averse end to the week.

Sterling also crossed the 1.40 threshold yet again as the Federal Reserve continued to renew its commitment to the economy, bond purchases, and keeping interest rates as low as possible through 2021. Pressures on UK leader Boris Johnson have recently weighed on the Pound though this cloud appears to have been lifted slightly by the positive forex trading attitude of this week.

Reopening Plans Press Ahead

In another positive note for the economy and those trading in forex, equities, and more, cities across the country are continuing plans to reopen at pace. This applies to none more than New York City. Big Apple Mayor Bill de Blasio making a firm commitment that the city will be 100% reopen by July 1st.

May is also going to see a gradual lifting of restrictions on dining at restaurants and indoor seating at bars. These alongside the ever-increasing number of vaccinated New Yorkers paint a positive picture economically, and from a human perspective with the city being largely shut down since March 2020. More than 6 million COVID-19 vaccines have been given in the city and this number is reflected in falling case numbers that had been the highest in the nation at one point.

Records Continue on Huge Earnings

A positive week on Wall Street continued when Apple and Facebook both posted knockout q1 earnings after the bell yesterday. Revenues soared way above expectation and managed to bring Facebook to a new record high. The S&P also notched a new record at the opening bell with all major indices in positive territory.

News that President Biden is planning more large-scale spending. This time a $1.8 trillion bill aimed at helping children, families, and students added to the positive mix as the street prepares for a bumper day of earnings reports. Initial jobless claims for the week also continue to fall coming in just above expectation at 553,000 filings.

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