Top 10 Make Money Online Tips

Dollar Firm As Market Weighs Data and Other Top Forex News

Dollar Firm As Market Weighs Data and Other Top Forex News

The dollar remained firm against most major currencies on Friday, after economic growth in the U.S. was revised upwards for the third quarter to its fastest pace since late 2011, while the Federal Reserve’s decision to begin tapering its stimulus program still supported the greenback.

In this mornings release, the Commerce Department said gross domestic product (GDP) grew at an annualised rate of 4.1% between July and September – up from a previous estimate of 3.6%.

During the U.S. session, the dollar fell slightly against most major currencies in low volume trading, but remained in tight ranges. USD/JPY edged down 0.16% to 1.0408 after the Bank of Japan kept its pledge to expand the monetary base by an annual JPY60 trillion to JPY70 trillion, in line with expectations.

In Europe the single currency found support after data showed that the Gfk German consumer climate index rose to 7.6 in December, from a reading of 7.4 the previous month. Analysts had expected the index to remain unchanged this month.

A separate report showed that German producer price inflation fell 0.1% in November, in line with expectations, after a 0.2% decline the previous month.

EUR/USD ended the session up 0.06% at 1.3671.

The pound meanwhile came under pressure after official data showed that the U.K. current account deficit widened to GBP20.7 billion in the third quarter, from GBP6.2 billion in the three months to June, the largest gap since 1989. Analysts had expected the current account deficit to widen to GBP13.9 billion in the last quarter.

A separate report showed that the U.K. gross domestic product expanded by 0.8% in the third quarter, in line with previous estimates.

Official data also showed that public sector net borrowing in the U.K. rose by GBP14.8 billion in November, exceeding expectations for a GBP13.4 billion rise, after a downwardly revised GBP7.4 billion increase in October.

Sterling closed the session down against the dollar, with GBP/USD falling 0.21% to 1.6338.

In Canada, the loonie continued to fall after official data showed that consumer price inflation was flat in November, compared to expectations for a 0.2% fall. Core consumer price inflation, which excludes the eight most volatile items, ticked down 0.1% last month, confounding expectations for a 0.1% rise.

A separate report showed that retail sales in Canada slipped 0.1% in October, disappointing expectations for a 0.3% rise. Core retail sales, which exclude automobiles, increased by 0.4% in October, compared to expectations for a flat reading.

USD/CAD clawed back losses at the closed of the session, finishing unchanged at 1.0663.

Elsewhere, the greenback was lower against the Australian and New Zealand dollars, with AUD/USD up 0.60% to 0.8920 and NZD/USD climbing 0.09% to 0.8200.

More coverage of today’s session.

• FT: UK growth revised higher. – The U.K. economy has performed better since the recession than originally thought, according to official data published on Friday, which confirmed that the economy grew 0.8% in the third quarter.
• BusinessInsider: U.S. GDP growth surges to 4.1%. – The third and final estimate of third quarter U.S. GDP by the Bureau of Economic Analysis is out. GDP grew 4.1% at an annualized rate in the third quarter, according to the estimate. Economists predicted growth of 3.6%, in line with the second estimate published by the BEA earlier this month.

More Top Stories:

Bloomberg: Canada dollar drops lowest in 3 years on below-target inflation. – The Canadian dollar plunged to the lowest level in three years after the inflation rate remained below the central bank’s target band for a second month.

Sydney Morning Herald: Aussie dollar weakens as Fed tapering and China weigh. – The Australian dollar has gradually weakened today, after a period of volatile trade that saw it briefly fell to its lowest levels in more than three years as the US Federal Reserve started a wind-back of its unprecedented stimulus program.

New Zealand Herald: Why everyone likes trading in our money. – The latest Bank of International Settlements global foreign exchange turnover survey shows that the New Zealand dollar has maintained its place as the world’s 10th most traded currency. So why does everybody like trading the New Zealand dollar so much?

News.com.au: New Zealand dollar ends week mixed. – The New Zealand dollar dipped this week after the Federal Reserve finally delivered on plans to slow the pace of its four-year-old asset purchase programme.

Dean Popplewell: USD/JPY – Higher as BOJ holds course. – USD/JPY continues to move higher, as the pair trades in the mid-104 range in Friday trading. The struggling yen has lost close to 200 points since Wednesday and is trading at five-year lows against the soaring US dollar.

Dean Popplewell: Euro continues to lose ground. – EUR/USD remains under pressure on Friday, as the pair trades in the low-1.36 range. The high-flying euro has hit some turbulence, coughing up about 150 points since Wednesday’s dramatic Fed announcement to taper QE. U.S. releases were a major disappointment, as Unemployment Claims rose for the second consecutive week.

Marc Chandler: Dollar remains firm as liquidity thins. – The U.S. dollar is firm and its post-FOMC gains have been extended against the euro and yen. Yet, the lack of participation cautions against reading too much into the price action.

Source