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Talking Points:

• US 2Q GDP beat expectations with a 4.0 percent clip of growth that seemed to support USD more than SPX

• While the FOMC Tapered and its statement was slowly pushing hawkishness, its impact was muted

• Looking at the bigger picture, volatility and interest rate measures are starting to trend higher

See volume behind the majors during the GDP and FOMC rate decision to gauge your trading approach using the free FXCM Real Volume and Transactions indicators.

Most traders were caught up in the short-term market responses from today's US 2Q GDP reading and the FOMC rate decision. Yet, there may be something more substantial brewing in the deeper fundamental currents. While there were a number of sharp moves in the financial markets - particularly from the US Dollar - there are more substantial and lasting developments behind volatility readings (risk) and yields (interest rate expectations). If these trends continue, a more systemic change in market conditions is afoot. We focus on these underlying trends in today's Strategy Video.

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