Global macro overview for 31/07/2015:
Yesterday's readings of the USA GDP data for the second quarter were slightly worse than anticipated. The number came out at the level of 2.3% q/q lower than analysts' forecast of 2.6% q/q. However, the GDP was higher than 0.6% q/q in the previous quarter. One of numerous reasons behind such weak data is the continuous strengthening of the US dollar. It was a headwind against the US economy and it will continue if the Fed makes a decision to raise the short-term interest rates this year (on September of December).
The USD/JPY pair's reaction to the news was positive in favor of the US dollar as the market violated the resistance at the level of 124.50 but did not manage to close a daily candle above it. Nevertheless, the outlook is still bullish and the US dollar's strengthening might continue for some more time.