The Dollar strengthened yesterday afternoon on news the US economy grew faster than initially thought in the third quarter, notching its best performance in two years, amid solid consumer spending and a jump in soybean exports. Gross domestic product increased at a 3.5 percent annual rate instead of the previously reported 3.2 percent pace.
Output was also lifted by upward revisions to business investment in structures and intellectual property products, underscoring the economy’s solid fundamentals which led to the Fed raising rates last week.
The US had several other positive data releases in the shape of core durable goods and unemployment claims. The orders for business equipment climbed more than forecast in November, a sign corporate investment is starting to firm up. Analysts believe the increased business sentiment about the economy following the presidential election has the potential to boost sales of productivity-enhancing equipment. The number of Americans filing for unemployment benefits rose to a six-month high last week, but remained below a level that is associated with labour market strength.
09:30 – GBP – Current Account; Forecast at -28.3B against a previous of -28.7B
Report courtesy of RationalFX