Growth wobbles create worries

Amidst fears of slowing growth, once again prompted by poor durable goods orders (actual: -2.8%, expected : 0.3%, previous: -0.2%), the greenback managed to sustain its strength.
The initial spurt in treasury prices subsided with a rather lukewarm reception of 2- year Treasury auction. The 10-year Treasury ended at 4.24% (previous 4.28%). The market is now eying the most awaited GDP and Chain Deflator data to be released today.
Despite occasional fears, GDP growth expectations are maintained at 3.5% with previous being 3.8%. Chain deflator is also expected to reduce to 2.1% from previous figure of 2.3%. GDP and deflator data are expected to give some bruises to dollar again, with major crosses expected to gain.

Outlook for the day
EUR/USD - Euro is seen gaining on GDP expectations and will move in the range of 1.2900 – 1.3020.
GBP/USD - Cable, holding the crucial 1.9000 level and tracking the dollar weakness, will trade in the range of 1.9000 – 1.9110.
USD/JPY - Despite constant flow of bad Japanese data, Yen sustained its marginal gains and is expected to trade in the range of 105.50 – 106.30.