Equities sold off initially but ended closing up very slightly for the day. The markets ar showing uncertainty throughout the day and probably would not have been able to close up if it weren’t for the fact that GDP numbers were better than expected. With rising GDP numbers, we could see earlier action by the Fed to raise rates but at this moment it still appears the rate hike is being priced in for Octobers Fed meeting. The dollar did gain on the news while gold and crude prices fell lower.
The EUR/USD dropped but was able to reverse half of the distance that it fell by the end of the day. We are watching for a little bounce to trigger our new short.
The GBP/USD attempted a rally and then closed flat for the day after triggering our short. We are still watching for price to fall in our favor and push us into profitability. If we clear the last week’s low, we will consider adding a contract short and tighten our stop.
The CHF/JPY fell back to our support level and we are watching for one more bearish day to tighten our stop again. We are profitable but we are concerned by a very near term support level that has not been overcome in the past 3 days. We will be cautious with this pair over the next day or two.