Trading Video: Dollar at Resistance, S&P 500 at Support Ahead of GDP and FOMC

By DailyFx | Updated July 29, 2014 AAA

DailyFX.com -

Talking Points:

• Though there is a heavy round of global event risk today, 2Q US GDP and the FOMC decision are top billing

• Given fundamental trends, GDP poses a greater volatility threat for 'risk', and the FOMC a USD catalyst

• Beyond short-term volatility, investors want to know if this combo can permanently revive market activity

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.

Anxious for a revival of volatility and 'normal' trading conditions, traders anxiously await the impact of today's top event risk: the FOMC rate decision and 2Q US GDP release. These are just two updates in a loaded economic calendar, but they carry the most potential to turn underlying fundamental trends rather than just tease short-term volatility. Beyond tracking the health of the world's largest economy, the growth report presents a weighty update that can tip the scales on confidence between richly priced assets and disturbingly barren expectations for risk and volatility. Alternatively, the FOMC decision carries more potential for rate speculation - a heavier dollar consideration. We discuss this event risk and its possible impacts on the market in today's Trading Video.

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