FX.co ★ Global macro overview for 29/04/2016

Global macro overview for 29/04/2016:

The US Perlim GDP data was released yesterday. It turned out to be worse than expected. Investors had anticipated a decline to the level of 0.7% from 1.4% in first quarter, but the revealed number was at the level of 0.5%. Nevertheless, the personal consumption rose to the level of 1.9%, which was better than the expected number of 1.7%, but still worse than the first quarter 2.4% level. In conclusion, the US economy expanded in the first quarter at the slowest pace in two years due to a sharp pullback in business investment and sluggish global demand. This situation will encourage the Fed's policy makers to hike the rates at the June meeting even if the two greatest external factors that concerned the Fed are no longer going to hold it back (Chinese growth fears and financial markets stabilization).

Let's now take a look at the EUR/USD technical picture in the 4H time frame. After making the lower low at the level of 1.1215 the market broke above the resistance at the level of 1.1396 and it looks like it is heading towards the swing high at the level of 1.1465. The overall trend is bullish and only a break out below the 1.1215 support level would put bears back into control.