GDP Plunges, Dollar Sinks and Treasuries Rally

The Q1 of 2014 was greatly affected by the weather and most economist were projecting a contraction to the tune of -1.7%. However, the Bureau of Economic Analysis, puts the decline to -2.9% at an annualized rate, which is sharply down from BEA’s previous estimate of -1.0%.

  • The dollar index fell off the bed and the probability of it re-testing the lower bound of the currentĀ horizontal have increased
  • USD/JPY the best follower of the dollar index has sharply declined testing the support of 101. 57
  • The EUR/USDĀ is rallying target of 1.3677 in sight
  • S&P futures are falling. Making an ABCD or an up-side flag with a downward target near low 1920s.
  • US Treasury Bonds are rallying towards the resistance of 139.00
  • The 30-Yr Treasury Yields are falling towards 3.267

DX_140625_60M DX_140625_D ES_140625_60M EUR_140625_D JPY_140625_60M TYX_140625_D ZB_140625_D

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