Your Trade After the GDP Report
Today's GDP reportwas underwhelming, and this strategist has an idea for trading the troublesome news.
In the U.S., apparently, not so much.
Today's GDP report came in well below forecasts, and Willie Williams, director of institutional derivative sales at Societe Generale, has a plan to trade on the disappointing news.
"Before, we had three main scenarios" that could hurt the global economic outlook, he told CNBC's Scott Wapner, including "a double dip recession in the U.S., weak demand in China, and now Europe."
Today, at least two of those are becoming reality.
True, Williams doesn't expect much downside pressure on the euro despite Spain's credit-rating cut, since the Federal Reserve is holding on to low interest rates which will weigh on the dollar. Still, he says, "the GDP data showed the situation in the U.S. is not really rose, and there's still some risk on the China side as well."
The Australian dollar tends to trade lower on poor global economic news, and today Williams wants to sell the Australian dollar against the dollar. He recommends entering the trade at 1.0450 and setting a stop at 1.0600, and he thinks a good target is 1.0000.
You can watch the discussion on the video.
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