The USD currency market is digesting US GDP Q3 data that shows 3.2% YoY growth, slightly lower than analyst expectations of 3.3%.
Despite the downward revision, economic growth is at its highest level since Q1 2015 and has helped the dollar’s strength in early trading. Also helping the dollar is the tax overhaul plan that could entice the Federal Reserve to raise interest rates at a faster than expected pace in 2018.
In spite of this positive news, the US dollar is still on track to post its worst yearly performance in 14 years.
Across the pond
The EUR/USD is trading a tad lower this morning after having gained just over 1% so far this week. The move up is credited to rising German Bond Yields.
After GDP/USD hit a fresh high yesterday, we have seen the rate retreat from those gains as UK consumer confidence dipped to a four year low.
Further, markets are digesting the news that the British government has demanded total secrecy in its free trade talks with the US for a post-Brexit deal. This only adds more uncertainty regarding the currency pair, as we head into this holiday weekend.
Have a great day,
Will Robertson, The WorldFirst Team