USA

• Recent EUR/USD strengthening- Since today’s news of the BNP Paribas situation, the EUR/USD has been dropping slowly. Expect this trend for the next day as global markets continue to become anxious about the subprime crises and its recent developments. These concerns strengthen the USD because more investors revert to its safe haven status. Until these recent worries subside in financial markets or the EU posts strong economic data next week, go short on the EUR/USD.
• Strengthening USD- Today proved to be a great day for anyone going long on the USD. US 2nd quarter GDP estimates were already looking optimistic at 3.2% especially when compared to the first quarter’s slowing of 0.6%. But those estimates proved conservative today at 8:30 am when GDP posted at a strong 3.4%. Opening positions yesterday was key as most gains were made before the announcement.