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Market Awaits U.S. GDP Data

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While the U.S. dollar made small gains against the euro in overnight trading, the oft-traded pair is hovering around a 3-month high. Analysts will be paying close attention to several economic indicators set to be released today, which have the potential to influence not only the greenback, but also the Swiss franc and loonie.

Here is a roundup of the day's main news events.

09:30 GMT: CHF KOF Economic Barometer

The KOF Economic Barometer is a monthly indicator that compiles 12 economic indicators in order to predict the direction of the Swiss economy for the next six months. Analysts consider the barometer to be fairly significant, and it consistently leads to market volatility.

Forecasts are for a figure of around 2.32, which if true, would signal a noteworthy increase over last months of figure of 2.25. Should the barometer come in at or above forecasted levels, traders can assume that the CHF will likely extend its rally against both the U.S. dollar and euro. At the same time, anything below the predicted figure could give the dollar and euro an opportunity to recoup their respective losses against the franc.

12:30 GMT: CAD GDP

The GDP report is a monthly indicator released by the Canadian government showing the overall change in value in goods and services produced by Canada. It is considered one of the leading market indicators and tends to have a large impact on the USD/CAD pair.

Analysts are forecasting a GDP figure of around 0.1%. If true, this would show an increase over last month's figure of 0.0%. The loonie has been making fairly substantial gains on the greenback over the last few days. Should the GDP report come in as forecasted, it may be able to extend its bullish trend.

12:30 GMT: USD Advance GDP

The Advance GDP figure is one of the primary gauges of overall economic health in the United States. The release of the report typically leads to heavy trading, and given the dollar's recent bearish tendencies, traders should be eagerly awaiting the result.

Analysts are forecasting a drop in the U.S. GDP. A figure of around 2.5% is predicted, which if true, will likely lead to continued losses against the dollar's main currency rivals. Should the figure come in above expectations, the greenback may be able to take advantage of the opportunity and recoup some of its losses.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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