The U.S. Dollar is rising this morning as Gross Domestic Product figures for Q3 came in as expected while Personal Consumption impressed.
Overview
GDP annualized quarter-over-quarter pace was 2.1%, Personal Consumption jumped by 3.2% over 2.9% estimated, while Core PCE Personal Consumption Expenditures also grew by the forecast 2.1% level. Personal Income and Personal Spending for November will be out at 10 AM as well as the December University of Michigan Consumer Sentiment. It looks like, once again, evidence of economic growth and general expansion in comparison to other regions is boosting the buck.
Changes across the Atlantic seem to be affecting their respective currencies in a negative way while it looks like the consistency of the U.S. economy merits the greenback hitting the brakes on too deep a loss for now. The back-and-forth swings make it hard to foresee a peculiar direction maintaining until the end of the year while last-minute trades could also have some influence and turn things around quickly. The rest of the year, while deceptively slow, could still be quite eventful.
What to Watch Today…
- Personal Income 10 AM
- Personal Spending 10 AM
- University of Michigan Consumer Sentiment 10 AM
Complete Economic Calendar can be found here.
EUR
The Euro is collapsing again as economic prowess in the U.S. gives credit to dollar bulls out there. Indeed, the American economy is looking more stable as French protests threaten to derail the recovery and all activity that goes on during the holidays. Airports and other industrial strikes could only add to the contractionary nature of productivity, thus affecting out positive forecasts for Europe. This may be temporary, but with an ailing Germany, a troubled France dims the prospects for Euro to end Q4.
GBP
The Pound is set to close its worst weekly performance since 2017 as the Brexit risk has decreased chances of a smooth 2020 that looks like it will require another strong gut to stomach the political push towards a no-deal separation. Officially, we have also learned that Mark Carney will stay as Bank of Governor until March 15th when his replacement, Andrew Bailey takes office.
Bailey is renowned for investigating leaks from the BOE that some traders used to their advantage. Havoc in England also creates cause for concern in regard to Scotland, whose leader Nicola Sturgeon is doing all she can to push for an independence vote that can get worldwide recognition.
