Dollar cautiously higher ahead of US GDP   

27 June 2019: King Dollar was thrown a lifeline earlier in the week after Fed Chair Jerome Powell cooled investor optimism around a potential US rate cut in July.

June was certainly a painful trading month for the Dollar, given how the currency has erased its 2019 gains on interest rate cut expectations. Where the Greenback trades as we enter the second half of 2019 will be influenced by US economic data, Fed monetary easing expectations and the direction of US-China trade talks.

Today, investors will direct their attention towards the final version of the US first quarter domestic gross product (GDP) which is projected to remain unchanged at 3.1%. While a report that matches expectations may support the Dollar, the currency is likely to be more concerned with the outcome of the G20 talks.

In regards to the technical picture, the Dollar Index (DXY) is trading marginally above 96.30 on the daily charts. The Greenback could experience a technical rebound towards 96.50 in the near term.

Reporting for EasyKobo on Thursday , 27 June 2019 in Lagos, Nigeria

Source: Lukman Otunuga, FXTM Research Analyst

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