The dollar had a mixed end to the week on Friday as it slid against sterling but made some gains against the euro. It did, however, rise to a three-month high against the Japanese yen following a surge in investor confidence. This was largely driven by progress on US tax reforms.
The only major economic data release came in the form of the existing home sales which were slightly better than expectations. Against a forecast of 5.29 million, the figure was actually 5.39 million. It’s another sign that the US economy is picking up and will reinforce the belief that the Federal Reserve will increase interest rates in December.
This Wednesday sees the release of the durable goods orders and we’ll also see the new home sales figures. On Friday, we’ll see the GDP growth rate which is expected to dip a little. Given the recent spate of hurricanes that have hit the US, this is understandable.
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