US Session – Dollar advances after GDP beats forecasts
August 29, 2013 8:05 pm
The U.S. dollar rallied against most major counterparts on Thursday after positive economic data. GDP accelerated faster than forecast and jobless claims fell. This raises the case for the Federal Reserve to reduce stimulus as soon as next month.
GDP rose at a 2.5 percent annualized rate, up from an initial estimate of 1.7 percent.
The Fed watches economic data to be able to decide if the U.S. economy could withstand a withdrawal of stimulus. If the Fed does indeed taper soon, this will be positive for the dollar since stimulus tends to weaken it.
Euro fell 0.8 percent versus the dollar, being weighed down by disappointing German jobs data. EURUSD fell to a low of $1.3218 and off from an intraday high of $1.3342 hit in Asia.
Sterling went nowhere today, trading in a range between $1.5481 and $1.5547, but remained in the lower range during the U.S. session.
The dollar advanced 0.6 percent against the yen, with USDJPY last at 98.24 yen after gaining 0.6 percent yesterday.
Against the Swiss franc, the dollar surged to a two-week high as USDCHF hit 0.9320 in late U.S. session trading today.
Gold is off three month high of $1,433 today, slipping to $1,407 as safe haven demand for the metal cooled off as uncertainty about Syria eased today.
The U.S. dollar rallied against most major counterparts on Thursday after positive economic data. GDP accelerated faster than forecast and jobless claims fell. This raises the case for the Federal Reserve to reduce stimulus as soon as next month.
GDP rose at a 2.5 percent annualized rate, up from an initial estimate of 1.7 percent.
The Fed watches economic data to be able to decide if the U.S. economy could withstand a withdrawal of stimulus. If the Fed does indeed taper soon, this will be positive for the dollar since stimulus tends to weaken it.
Euro fell 0.8 percent versus the dollar, being weighed down by disappointing German jobs data. EURUSD fell to a low of $1.3218 and off from an intraday high of $1.3342 hit in Asia.
Sterling went nowhere today, trading in a range between $1.5481 and $1.5547, but remained in the lower range during the U.S. session.
The dollar advanced 0.6 percent against the yen, with USDJPY last at 98.24 yen after gaining 0.6 percent yesterday.
Against the Swiss franc, the dollar surged to a two-week high as USDCHF hit 0.9320 in late U.S. session trading today.
Gold is off three month high of $1,433 today, slipping to $1,407 as safe haven demand for the metal cooled off as uncertainty about Syria eased today.
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