020 7898 0500The US dollar (USD) gained support throughout the day, specifically against the British pound, after positive US home sales data came out. US home resales unexpectedly rose in November, reaching their highest level in nearly 10 years as buyers jumped into the market to take advantage of the low interest rates.
Meanwhile Crude Oil Inventories fell to 2.3 million barrels, which would suggest that either demand for oil has increased or oil supply has reduced. Given that the US dollar is negatively correlated against oil, investors will continue to track what impact this will have on the US dollar if it carries on. Overall it was a quiet day in terms of data as we draw closer to the Christmas festivities.
Today we have the final big numbers from the US of the year. All eyes will be on the final release of Q3 GDP which is expected to be revised slightly higher from 3.2% to 3.3%. In addition we have the durable goods orders and weekly jobless claims data, all of which are key indicators with regards to the economy. As the Federal Open Market Committee (FOMC) have signposted that 2017 could contain three interest rate hikes, these numbers need to be positive.
Forecasters are not expecting any large differences in the data compared to the previous month. However consistent euro weakness against the US dollar displayed this week could potential play a hand in a strong US dollar in the coming few weeks.
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