Wednesday, November 27, 2019

Forex- U.S. Dollar Rises With Q3 GDP Revised Higher

© Reuters.  © Reuters. - The U.S. dollar posted gains on Wednesday after the latest measure showed the U.S. economy grew more than expected in the third quarter.

The Commerce Department reported that gross domestic product increased at a 2.1% annualized rate, compared to 1.9% in the first reading. In a separate report, durable goods gained 0.6% after falling 1.4% in the prior month.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.2% to 98.340 as of 10:57 AM ET (15:57 GMT). The dollar was higher against the safe-haven Japanese yen, with USD/JPY gaining 0.3% to 109.33.

The greenback was also supported by comments from U.S. President Donald Trump, who said the U.S. was in the "final throes" of a deal with China. In comments on Tuesday he also underscored Washington's support for protesters in Hong Kong, which Beijing has called out against.

"We're with them," Trump said on Tuesday. "I have a very good relationship, as you know, with President Xi (Jinping). We're in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It's going very well but at the same time we want to see it go well in Hong Kong.”

Trading is expected to be thin due to Thursday’s Thanksgiving holiday.

Meanwhile the pound was flat due to a lack of news on the Brexit front, with GBP/USD at 1.2870 and EUR/USD down 0.2% to 1.0998.

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