It has been an interesting morning of trade in New York with the market extremely volatile following the economic releases but unsure as to the direction it wants to take. While equities are slightly firmer, currency carry trades have come off to reflect a notable divergence. Meanwhile, the USD has been offered with the Swisse leading the way against the greenback, followed by the Kiwi, Euro and Aussie. Although the headline reading for US GDP was better than expected, some downward revisions to the previous month, along with a much weaker personal consumption component left some traders with an unsettling feeling. Meanwhile, in Canada, headline GDP was weaker than forecast, with a downward revision also seen to the previous month. The only bright spot on the day came from Chicago PMI which managed to slightly better expectation. The IMF was back on the wires with a sluggish recovery call for the US economy despite some improved financial conditions. The IMF also stated that the USD was moderately overvalued. This follows a report from the same organization earlier in the week which also said the Euro was overvalued.
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