US Gross GDP Beats Expectations of 1.9% As Consumers Start To Spend That Extra Gas Money
Not minding the most recent economic data which shocked traders although littered with some disappointments, had the greenback was seen edging higher. Although, it was seen that the Federal Reserve Bank most recently tramped up its key rate, the next rate hike’s timing would be compelled by upbeat data. The most reading of the third quarter GDP figure on Tuesday revealed that the US economy grew at a pace of 2%, which was just cautious of the 1st reading. Core inflation was seen rising 1.4% after beating slightly beating expectations. Subsequently, resale figures for US homes dipped 10.5% in the previous month, the biggest of such declines in over five years.
As recounted around 10:49 am (BST) in London, the EUR/USD was seen trading around $1.0928, a decline of 0.22%; the pair was seen trading from $1.0914 to $1.0955. The USD/JPY was ranging at ¥120.9665, a decline of 0.06%; setting the session low at ¥120.8900 with the day’s high being set at ¥121.1350.
The latest reading of the UK economy revealed that the third quarter growth dipped to 0.4% qoq versus analysts forecast of 0.5%. On a yoy basis, third quarter growth dipped to 2.1% versus a consensus figure of 2.3%. The possibility of a future rate hike is still being considered by the Bank of England and just like its counterpart i.e. the Federal Reserve Bank, the decision will be data driven. The GBP/USD pair was seen trading at $1.4879, a gain of 0.36% while the EUR/GBP was seen trading at £0.7342, down about 0.61%.
Asian shares edged higher during Wednesday’s quite session in line with a little uptick on Wall Street, while the greenback was seen dipping lower, with oil prices rising after its latest selloff.
The Shanghai’s Composite index breached its 2- day winning streak, while the blue-ship CSI300 index touched a fresh 4- month high for a second time in a row. The Chinese Yuan appreciated to 6.4780 versus the dollar, weaker than the People’s Bank of china mid-point rate of 6.4731.
The Kiwi Dollar was better than expected during the quiet Asian session following November’s Trade Balance numbers which revealed that the deficit surprisingly narrowed to –NZ$3678 million, pointing to the smallest shortfall since April 2009. The front-end bond yields in New Zealand moved higher after the data crossed the wires, signifying the supportive figure weighed against the Reserve Bank of New Zeeland rate cut rumor. The Swiss Franc and the Euro were seen tracking lower, both trading inversely of Asian stock exchanges to give investors clue that ‘risk-on’ sentiment driven carry trades while grueling funding currencies.
The Dow Jones Industrial Average climbed nearly 200 points during overnight session following the final estimate for the U.S. Q3 gross domestic product beat expectations for a 1.9% reading.
Crude oil prices were seen up across major markets with the Brent Crude edging back to $36.44 after trading as low as $36.28 per barrel earlier during Wednesday’s trading.
The U.S. West Texas intermediate (WTI) crude futures were quoted 24 cents higher at around $36.38 per barrel.
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