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Your Trade After the GDP Report

Friday, 27 Apr 2012 | 2:34 PM ET

Today's GDP reportwas underwhelming, and this strategist has an idea for trading the troublesome news.

Got growth?

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."

Money in Motion: Currency Play on US GDP Data
Willie Williams, Societe Generale discusses the best play on currencies right now since a weaker-than-expected US GDP report. The FMHR traders also discuss what's trending on twitter right now.

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.

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.

Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.

Talk back: Tell us what you want to hear about - email us at moneyinmotion@cnbc.com.

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