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For the 24 hours to 23:00 GMT, the GBP rose 0.28% against the USD and closed at 1.2474.

In the Asian session, at GMT0300, the pair is trading at 1.249, with the GBP trading 0.13% higher against the USD from yesterday's close.

Overnight data showed that UK's GfK consumer confidence index surprisingly remained steady at -6.0 in March. Markets were anticipating it to fall to a level of -7.0.

The pair is expected to find support at 1.2419, and a fall through could take it to the next support level of 1.2348. The pair is expected to find its first resistance at 1.2543, and a rise through could take it to the next resistance level of 1.2596.

Trading trend in the GBP is expected to be determined by the release of UK's final fourth quarter GDP numbers, slated to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.63% against the JPY and closed at 111.79.

In the Asian session, at GMT0300, the pair is trading at 112.06, with the USD trading 0.24% higher against the JPY from yesterday's close.

Data released overnight showed that Japan's national consumer price index (CPI) advanced above expectations by 0.3% on an annual basis in February, while investors had envisaged for a rise of 0.2%. In the previous month, the CPI had advanced 0.4%. Additionally, the nation's jobless rate unexpectedly eased to 2.8% in February, marking its lowest level since June 1994 and boosting optimism over the health of the nation's labour market. Markets had anticipated the jobless rate to remain steady at 3.0%.

Moreover, the nation's flash industrial production rebounded 2.0% on a monthly basis in February, rising at the fastest pace in eight months and surpassing market expectations for a rise of 1.2%. In the previous month, industrial production had fallen 0.4%.

The pair is expected to find support at 111.27, and a fall through could take it to the next support level of 110.47. The pair is expected to find its first resistance at 112.5, and a rise through could take it to the next resistance level of 112.93.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.43% against the CHF and closed at 1.0004.

On the macro front, Switzerland’s KOF economic barometer unexpectedly rose to a level of 107.6 in March, defying market consensus for a fall to a level of 105.8 and following a revised reading of 106.9 in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.0010, with the USD trading 0.06% higher against the CHF from yesterday’s close.

The pair is expected to find support at 0.9967, and a fall through could take it to the next support level of 0.9923. The pair is expected to find its first resistance at 1.0034, and a rise through could take it to the next resistance level of 1.0057.

With no economic releases in Switzerland today, investor sentiment would be governed by global macroeconomic factors.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.03% against the CAD and closed at 1.3335.

In economic news, Canada's industrial product price index advanced less-than-expected by 0.1% on a monthly basis in February, against market expectations for a rise of 0.4% and compared to a revised increase of 0.6% in the prior month. Further, the nation's raw material price index registered a more-than-anticipated rise of 1.2% MoM in February, following a gain of 1.7% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.334, with the USD trading a tad higher against the CAD from yesterday's close.

The pair is expected to find support at 1.3293, and a fall through could take it to the next support level of 1.3246. The pair is expected to find its first resistance at 1.3369, and a rise through could take it to the next resistance level of 1.3398.

Ahead in the day, market participants focus on Canada's crucial GDP data for January, to gain a better insight into the nation's economy.

The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.

Currency pair EUR/USD

The EUR/USD continues to push lower with strong bearish impulse, which could either be a wave 1 (light green) or wave A (dark green). The strong bearish trend is indicated by the resistance trend line (orange). A break above this level could signal the end of wave 1 or wave A and the retracement for wave 2 or B.

The EUR/USD broke below the 1.0750 support and support trend line (dotted green) as expected in yesterday's wave analysis and continued with the wave 5 (pink). Price seems to be building an extra 5 waves (purple) which could take price down to the Fibonacci targets.

Currency pair GBP/USD

The GBP/USD remains in a triangle (red/green lines) chart pattern after breaking the smaller triangle yesterday (dotted orange). The wave WXY (orange) seems to be part of a wave X (blue) which could fit in a WXY (blue) within a larger wave E (green) triangle.

The GBP/USD seems to have completed the wave X (orange) at the 61.8% Fibonacci level mentioned yesterday at around 1.2525. Now price has turned and it seems to be building a bearish ABC (pink). A break below support (green) could confirm the bearish breakout whereas a break above resistance (red) would indicate an expansion of the wave X (orange).

Currency pair USD/JPY

The USD/JPY broke above the resistance trend line (dotted orange) and managed to retrace back to the 38.2% Fibonacci levels of wave B vs A, which could act as a resistance level. A break above this Fib could see price challenge the 50-61.8% Fibonacci zone. A bearish bounce could see price test the support trend line (green).

The USD/JPY indeed bounced at the Fibonacci levels of wave B vs A and continued with a strong bullish momentum which could be a wave 3 (pink). In that case, a wave 4 (pink) retracement could develop but price needs to stay above the 50% Fib of wave 4 vs 3 otherwise the wave 4 is invalidated.

A note on lower timeframe confirming price action...

Waiting for lower timeframe confirmation is our main tool to confirm strength within higher timeframe zones, and has really been the key to our trading success. It takes a little time to understand the subtle nuances, however, as each trade is never the same, but once you master the rhythm so to speak, you will be saved from countless unnecessary losing trades. The following is a list of what we look for:

• A break/retest of supply or demand dependent on which way you're trading.
• A trendline break/retest.
• Buying/selling tails ... essentially we look for a cluster of very obvious spikes off of lower timeframe support and resistance levels within the higher timeframe zone.
• Candlestick patterns. We tend to only stick with pin bars and engulfing bars as these have proven to be the most effective.

EUR/USD

The EUR/USD, as you can see, has been trading south for the past three days, down from Monday's high at 1.0905. Yesterday's decline aggressively swallowed both the H4 demand at 1.0705-1.0723 (now acting resistance area) and the 1.07 handle, potentially opening up the path south down to a H4 demand fixed at 1.0607-1.0632.

Over on the bigger picture, we can see that a daily support area at 1.0714-1.0683 (now acting resistance area) was also taken out during yesterday's bearish assault. According to the weekly timeframe, the next downside target does not come into view until the 2017 yearly opening level at 1.0515/support area at 1.0333-1.0502.

Our suggestions: To our way of seeing things, the pair reflects a strong bearish stance at present. On that account, our desk will be watching for H4 price to retest the 1.0705-1.0723/1.07 neighborhood as resistance today. Assuming this comes to fruition, and the pair chalks up a reasonably sized H4 bearish candle from this area, a short with a target objective set at the H4 demand drawn from 1.0607-1.0632 could be an option (as per the black arrows).

Should the above setup come into view today, it may be worth noting that there is also a daily demand seen just below at 1.0599-1.0650. Therefore, once price crosses paths with the 1.0650 level (the top edge of this zone), you may want to think about reducing risk to breakeven!

Data points to consider: German retail sales at 7am, German unemployment change at 8.55am, EUR CPI flash estimate at 10am. US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm GMT.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 1.0705-1.0723/1.07 ([watch for a reasonably sized H4 bearish candle to form from here before pulling the trigger] stop loss: ideally beyond the rejection candle's wick).

GBP/USD

Today's story on the GBP/USD shows that price recently extended Wednesday's bounce from daily demand at 1.2334-1.2379 to a high of 1.2523. H4 action, however, reveals that price was unable to sustain gains beyond the Fib ext. 161.8% at 1.2535/127.2% at 1.2501 and round number 1.25 during Thursday's segment. While H4 bulls still appear to have a hand in this fight, let's remember that weekly price is confined within the walls of a supply base coming in at 1.2569-1.2404.

As can be seen from the higher-timeframe structure, there's clearly a difference of opinion here. So, unfortunately we have little direction to hang our hat on at the moment.

Our suggestions: In the absence of clearer price action, our team has come to a general consensus that remaining flat is the safer route to take today.

Data points to consider: UK current account data as well as final GDP release at 9.30am, MPC member Haldane speaks at 10pm. US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm GMT.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

AUD/USD

With the pair managing to break a two-day bullish phase, yesterday's trading saw the commodity-linked currency selloff from a H4 supply zone coming in at 0.7684-0.7674, ending the day touching gloves with March's opening line at 0.7642. Despite H4 price showing signs of recovery from this monthly level, we feel there's scope for further downside here. This is largely due to daily action possibly forming a D-leg to an AB=CD formation taken from the high 0.7749. This pattern completes between the Fib ext. 127.2% at 0.7543 (seen within the lower limits of the daily demand at 0.7540-0.7570) and 161.8% at 0.7488, which happens to be positioned within a daily support area at 0.7449-0.7506.

Our suggestions: In view of the above points, our desk has absolutely no interest in buying from March's opening level today. Should this level be taken out and retested as resistance on the other hand, taking an intraday short from this region, targeting the H4 Quasimodo support at 0.7603 (shadowed closely by 0.76) could be an option.

Data points to consider: US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm GMT.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Watch for price to engulf 0.7642 and then look to trade any retest seen thereafter ([waiting for a lower-timeframe confirming signal to form [see the top of this report] before executing a trade is advised] stop loss: dependent on where one confirms this level).

USD/JPY

Underpinned by a weekly support area at 111.44-110.10, the bulls are showing signs of recovery. Providing that this continues, there's potential for price to challenge the supply zone seen at 115.50-113.85. Down on the daily timeframe, however, the unit is seen trading within a resistance area coming in at 111.35-112.37. The pair is likely to find some resistance here with the zone having been a strong barrier of support on a number of occasions in the past.

With US yields rallying north and the DOW 30 punching to a fresh high of 20753 yesterday, the H4 candles broke through the mid-level resistance at 111.50 and closed just ahead of the 112 handle. Seeing as how price is close to testing 112 and the fact that daily price is seen within a resistance area right now, we would refrain from entering into a buy position just yet.

Our suggestions: A close above 112, followed by a retest as support and a reasonably sized H4 bull candle is, we believe, enough to justify a long position, targeting February's opening line at 112.77 as an initial take-profit zone. Granted, this setup would entail buying into the upper edge of the daily resistance area, but given the strength seen from the weekly support area at present coupled with a (possible) close above 112, we feel a long is worth the risk.

Data points to consider: US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm GMT.

Levels to watch/live orders:

• Buys: Watch for price to engulf 112 and look to trade any retest seen thereafter ([waiting for a reasonably sized H4 bull candle to form following the retest is advised] stop loss: ideally beyond the candle's rejection tail).
• Sells: Flat (stop loss: N/A).

USD/CAD

During the course of yesterday's sessions, we can see that H4 price whipsawed below the consolidation fixed between 1.3323/1.34, and came within striking distance of tapping the Quasimodo support at 1.3275. Of particular interest is that this H4 range formed just below the 2017 yearly opening level at 1.3434.

With H4 price looking poised to extend north up to the upper edge of the current range, where do we go from here? Well, we still have a keen interest in the H4 1.3434/1.3419 (November, December and January's opening levels) region for shorts. Here's why:

Of note is the 1.34 handle (the top edge of the H4 range). Psychological levels are prone to fakeouts, and with 1.3434/1.3419 lurking just above 1.34, we feel it'd be a fantastic barrier to help facilitate a fakeout.

When these monthly levels converge, we typically find that they hold firm the majority of the time offering at least a bounce.

Our suggestions: To short, we are looking for the lower timeframes to respect the above noted 1.3434/1.3419 area (see the top of this report for ideas on how to short using lower-timeframe structure). From this point, 1.34 could be a potentially troublesome level, so we'd be looking for this base to be consumed, which would in turn be our cue to reduce risk to breakeven.

Data points to consider: US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm. Canadian GDP at 1.30pm GMT.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 1.3434/1.3419 ([waiting for a lower-timeframe confirming signal to form prior to pulling the trigger is advised] stop loss: dependent on where one confirms this region).

USD/CHF

The bullish pulse continues to beat in the USD/CHF market this morning. The H4 support area at 0.9959-0.9944 held beautifully and ended the day with the candles engulfing parity (1.0000). Also noteworthy is daily price taking out the supply at 1.0001-0.9957, which is in the process of being retested as a support area.

Whilst the retest off 1.0000 looks to be an attractive buy, it might be worth noting that just ahead of H4 price sits resistance planted at 1.0024. In addition to this, we can also see the 2016 yearly opening base line at 1.0029! As a result, our desk will not be participating in any buying activity just yet.

Our suggestions: Ultimately, we would really like to see 1.0024 taken out today. A H4 close beyond this number is, at least in our view, a reasonably strong indication that the pair will trade up to March's opening level at 1.0066. Following a H4 close higher here, we would like to see price retest this line as support and print a lower-timeframe confirming buy setup (see the top of this report), before looking to press the buy button.

Data points to consider: US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm GMT.

Levels to watch/live orders:

• Buys: Watch for price to engulf 1.0024 and look to trade any retest seen thereafter ([waiting for a lower-timeframe confirming signal to form following the retest is advised] stop loss: dependent on where one confirms this level).
• Sells: Flat (stop loss: N/A).

DOW 30

The US equity market punched to a fresh high of 20753 yesterday, but concluded trade by pulling back to lows of 20699. This, as you can probably see, also brought the index slightly higher into the jaws of a daily resistance area coming in at 20714-20821. While there is a H4 resistance area seen just overhead at 20769-20801, which happens to be submerged within the above noted daily resistance area, we are a little concerned about the validity of this region. This is largely due to seeing weekly action in the process of printing a nice-looking buying tail on a pullback from record highs of 21170. It takes a lot of money (professional money) to create such a pattern on this scale!

Our suggestions: Neither a long nor short seems attractive at this time. It doesn't help to see daily price so tightly confined between the aforementioned resistance area and demand at 20527-20626. To confirm bullish strength, we want to see H4 price close above March's opening level at 20824.That way, we can be pretty sure that daily offers have also been taken out as well (the daily resistance area mentioned above at 20714-20821).

Data points to consider: US Core PCE data at 1.30pm, FOMC Dudley speaks at 2pm as well as FOMC member Kashkari speaking at 3pm GMT.

Levels to watch/live orders:

• Buys: Watch for H4 price to engulf 20824 before considering longs in this market.
• Sells: Flat (stop loss: N/A).

GOLD

Despite the yellow metal bouncing from March's opening level at 1245.9 yesterday, the unit continued to decline in value. As can be seen from the weekly chart, price is now seen trading back below the Quasimodo resistance level at 1244.5, and daily action shows little support in the way until we reach the 1216.7-1225.7 area.

Therefore, buying from the nearby H4 support area at 1235.7-1238.1 is not really something we would get excited about. In fact, we're hoping that price does not connect with this zone before retesting March's opening level! 1245.9 would make for a beautiful short setup, using the aforementioned H4 support area as an initial target zone.

Our suggestions: Should H4 price retest 1245.9 before shaking hands with the above noted H4 support area, we would, assuming a lower-timeframe sell signal was also present (see the top of this report), look to short this market.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 1245.9 region ([waiting for a lower-timeframe confirming signal to form is advised before pulling the trigger [stop loss: dependent on where one confirms this area).

Global Markets:

• Asian stock markets: Nikkei up 0.60 %, Shanghai Composite and Hang Seng both rose 0.05 %, ASX 200 gained 0.10 %
• Commodities: Gold at $1240 (-0.35 %), Silver at $18.12 (-0.50 %), WTI Oil at $50.25 (-0.20 %), Brent Oil at $53.00 (-0.20 %)
• Rates: US 10-year yield at 2.42, UK 10-year yield at 1.12, German 10-year yield at 0.34

News & Data:

• Chinese Manufacturing PMI Mar: 51.8 (exp 51.6; prev 51.6)
• Chinese Non-Manufacturing PMI Mar: 55.1 (prev 54.2)
• Japanese Industrial Production (MoM) Feb P: 2.0% (exp 1.2%; prev -0.4%)
• Japanese Industrial Production (YoY) Feb P: 4.8% (exp 3.9%; prev 3.7%)
• Japanese Unemployment Rate Feb: 2.8% (exp 3.0%; prev 3.0%)
• Japanese Overall Household Spending (YoY) Feb: -3.8% (exp -1.7%; prev -1.2%)
• Japanese National CPI (YoY) Feb: 0.3% (exp 0.2%; prev 0.4%)
• Japanese National CPI Ex-Food, Energy (YoY) Feb: 0.1% (exp 0.1%; prev 0.2%)
• Australian Private Sector Credit (MoM) Feb: 0.3% (exp 0.5%; 0.2%)
• Australian Private Sector Credit (YoY) Feb: 5.0% (exp 5.3%; prev 5.4%)
• New Zealand ANZ Activity Outlook Mar: 38.8 (prev 37.2)
• New Zealand ANZ Business Confidence Mar: 11.3 (prev 16.6)
• New Zealand Building Consents (MoM) Feb: 14.0% (prev 0.8%)
• South Korean Industrial Production (MoM) Feb: -3.4% (exp -0.3%; prev 3.3%; rev prev 2.9%)
• South Korean Industrial Production (YoY) Feb: 6.6% (exp 8.0%; prev 1.7%; rev prev 1.4%)
• UK GfK Consumer Confidence Mar: -6 (exp -7; prev -6)
• PBoC Fixes USDCNY Reference Rate At 6.8993 (prev fix 6.8889; prev close 6.8886)

Markets Update:

The US Dollar appreciated after a stronger than expected US GDP number and hawkish talk from several FOMC members. EUR/USD fell below support at 1.07 and is likely to extend losses to 1.06 in the near-term. Meanwhile, USD/JPY rallied above 112 in Asia and reached 112.15 after the strong Chinese economic numbers were released. Offers are noted around 112.20. However, above that level, there is very little resistance until 112.80-85.

GBP/USD bounced yesterday, despite the broad Dollar strength. The pair briefly rallied above 1.25, and could test 1.26 resistance soon. Worries about Brexit are still present, but those are rather medium- to long-term. In the short-term, traders are more concerned with the UK economic numbers and what the Bank of England will do.

Flows in the commodity currencies remain very light. AUD/USD and NZD/USD have barely moved this week. Even USD/CAD is consolidating in a rather tight range, despite the increased volatility in Oil prices.

Upcoming Events:

• 07:00 GMT – German Retail Sales
• 07:45 GMT – French CPI
• 09:00 GMT – German Unemployment Rate
• 09:30 GMT – UK GDP
• 10:00 GMT – Euro Zone CPI
• 10:00 GMT – Italian CPI
• 13:30 GMT – US Core PCE Price Index
• 13:30 GMT – US Personal Income
• 13:30 GMT – US Personal Spending
• 13:30 GMT – Canadian GDP
• 15:00 GMT – US Michigan Consumer Sentiment

STOCKS

Dow (20728.49, +0.33%) rose a bit yesterday and could re-test 21200 resistance on the upside in the next week. Immediate upside could be limited just now.

Dax (12256.43, +0.44%) has moved up in line with our expectation, breaking above 12220. Immediate resistance is visible near 12300 which if holds could push the index down to 12100 in the early next week before it again picks up the upward momentum.

Nikkei (19204.70, +0.74%) is trading higher but overall remains stable. Trade within 19350-19000 over the next couple of sessions is possible.

Shanghai (3223.28, +0.41%) bounced back slightly from levels near 3200 led by a rise in the shipping and infrastructure stocks. Support near 3150 could be tested if 3200 breaks on the downside; else we could see the index move up towards 3250-3275 in the next week.

Nifty (9173.75, +0.33%) could be headed towards 9200-9280 as mentioned yesterday. Near term channel uptrend remains intact and the index looks bullish for the coming week.

COMMODITIES

A stronger Dollar (100.56) has affected all the metals but Crude keeps strong for the week.

Gold (1240.96) has been dragged down to the lower end of the near term range of 1240-60 by the Dollar strength and a break below 1240 may pull it down lower towards 1225-20 levels. The weakness may persist till the resistance 1260 is overcome.

With the Gold-Silver ratio (68.61) crashing in the last few days, Silver (18.06) has been less affected by a stronger Dollar and trades comfortably in the range of 17.82-18.35, which may continue for a couple of sessions more.

Copper (2.668) has been stuck in the range of 2.55-2.70 for 4th consecutive week running with no visible intent for a breakout. The horizontal trading may go on for another week.

Expectation of prolonging the production cut by a few OPEC countries like Kuwait keeps driving Brent (52.82) and WTI (50.13) higher. The target of 53.36 for Brent is close while WTI may test the near term resistance 50.80-51.10.

FOREX

With a few members of the Fed taking a more hawkish stance with talks of more than 3 rate hikes this year, Dollar has got a boost.

Dollar Index (100.53) has rallied just as expected and the targets of 100.70-101.00 may be achieved within the next 2-3 sessions with immediate support coming up at 99.90.

Euro (1.0680) has weakened much more than expected as it trades below 1.07 levels. If the support of 1.065 fails to hold now, then deeper levels of 1.0580, even 1.0500 may come into consideration in the near term.

A rise in Core Consumer prices for the second consecutive month and the lowest reading in the unemployment data in the last 22 years have driven Dollar-Yen (112.02) above the resistance of 111.50-60 as expected and now a break above the interim resistance of 112.15 may push it higher towards 112.80 and 113.40.

Pound (1.2486) is firming up the range of 1.2350-1.2600 in which it may trade horizontally for the next few sessions with no directional bias.

Aussie (0.7645) has been the quietest currency in the last couple of sessions and the current trendless state may prolong the sideways consolidation in the range of 0.7600-0.7750.

Dollar Rupee (64.92) enjoyed a pause day yesterday but the current price of 64.85 in the NDF market indicates no impact of global Dollar strength on the pair. Our target/support remains unchanged in 64.80-60 and resistance at 65.00 and 65.20.

INTEREST RATES

The US-UK 10yr (-1.30%) continues to fall and may test levels near -1.38% in the coming sessions. While the yield spread moves lower, Pound may either consolidate sideways or move lower to re-test 1.23-1.21 again in the medium term.

The German-Japan 10Yr (0.26%) has been falling from resistance near 0.40% and looks bearish in the near term, indicating a weaker Euro against Japanese Yen in the near term.

The US-Japan 10YR (2.35%) is holding above the immediate support and while that holds, it could move higher towards 2.4% taking up dollar-Yen and Nikkei with itself.

The 10Yr GOI (6.866%) could test levels near 6.80-6.78% before bouncing back to higher levels. This fall towards 6.78% could lead to some more Rupee strength in the near term.

Following this daily EUR/CAD support level that we featured on the blog back in February, longs were the obvious play and traders obliged.

But after a 750 pip rally, the pullback as the longs started to cover hit. Something you can then clearly see with a 350 pip straight line drop from the last swing high.

From a technical point of view however, nothing has actually changed. Price is still above the higher time frame support level and if you perceive this latest fall as healthy long covering then you expect the shorts to be absorbed and a new push higher.

Taking a look at the daily chart now, look I want to highlight where price has pulled back to now:

EUR/CAD Daily:

This is a nice little area of interest that has acted as short term support/resistance in the past and if you subscribe to the above opinion of this just being a healthy pullback then this is an area to watch how buyers react within.

Just keep in mind that you can see around 175 pips below the marked level, there is another one of these areas of interest. Wait and see how price reacts around them, but if you’re still long from the daily support level, then you have the pips and room to use either of these levels to manage your risk around if you add into your position.

Gold has posted losses in the Thursday session. In North American trade, gold is trading at $1245.17 per ounce. On the release front, US Final GDP posted a gain of 2.1%, edging above the estimate of 2.0%. Unemployment claims jumped to 258 thousand, well above the forecast of 244 thousand. On Friday, we'll get a look at consumer confidence levels, with the release of UoM Consumer Sentiment.

It's been a rough-and-tumble start for the Trump administration, which has been beset by controversy and crises since Trump assumed office in January. Trump has yet to provide any details of an economic policy, to the consternation of the markets. Last week, Trump's proposed healthcare bill was dead on arrival before even being voted on, a humiliating defeat for the president. This setback has made the markets even more jittery about Trump, and the inquiry into the Trump administration's links with Russia is gathering steam, which is another cause for concern for nervous investors. Trump has said he will now focus on tax reform, but the White House will need to improve coordination with Republican lawmakers to ensure that his next attempt to pass legislation is not a repeat of the healthcare debacle. Still, despite all of Trump's difficulties, he can at least point to a strong US economy, which shows no signs of slowing down. GDP in the first quarter was revised upwards to a respectable 2.1% and the labor market remains very strong. The markets may be looking for the Federal Reserve to be more aggressive, but the central bank is on course to raise rates twice more in 2017, a testament to an economy heading in the right direction.