Good Morning Traders
Another strong day for the equity markets yesterday,while the Euro lost some ground against its major currency pairs. One thing that has caught my attention over the last week or so in relation to the European equity markets is that they are beginning to trade very similar to that of their US counterparts. The US equity markets have been trading off the back of FED policy and whether news will effect QE, this has begun in Europe over the last week as all moves have become correlated to news relating to interest rate cuts. All interest rate related headlines have managed to cause aggressive swings and this play is likely to continue until  next Thursday.

Today all eyes will be on the GDP figures for the US economy, traders are expected to see data showing that the US economy has grown in the first three months of 2013 at the fastest rate in more than one year. But don't be fooled the initial look at GDP often paints an exaggerated image of the economy. We are expecting to see a figure of 3.2% for annualised growth. We will be looking to see what sectors of the US economy are improving, and it will give individuals and government officials an indication of the success of QE.

Expect the morning to be quiet, we might see a move lower coming into the news release as traders take a bit of money off the table and lock in healthy gains from this weeks session. In Europe the news flow is quiet, so expect to see the market react to any comments made in relation to interest rates.

Happy Trading