US GDP data is due momentarily for Q3. Economists expect an annual growth rate of 3.3% but traders will be looking lower after Goldman cut their forecast yesterday. The assumption is that Goldman compiles the data for the government anyway…;)
A weaker figure will up risk aversion once again while a firm figure may make traders more willing to assume risk. Data has been slowing of late (Fed surveys, home sales…), so an upside surprise may have limited lasting impact.
Look for short-covering above 1.4870 while an expiring exotic option at 1.4680 will prove tempting if EUR/USD weakens. We trade at 1.4722 as we await the data.