Forex Trading Strategies

02 Feb 2023 Forex News: Prices & Analysis

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On 02 February 2023, the forex markets saw significant gains as traders reacted strongly to news of an increase in US economic growth. The latest economic figures show that the US gross domestic product (GDP) grew at an annual rate of 5.1%, up from an anemic 2.5% in November. This growth was driven largely by consumer spending, private investment and business investment, indicating a continued recovery from the economic challenges wrought by the COVID-19 pandemic. Traders across the globe responded to the news with increased activity in buying and selling the US dollar and other major currencies, spurring a surge in market volatility and pushing the US Dollar Index (DXY) to a new two-year high. This favorable news in the US economy helped to buoy the Euro and British Pound against the Dollar, and further price gains could be expected in the days ahead.