It was another day of positive data for the US on Friday, as GDP beat forecasts, coming in at 3% in the third quarter of 2017. Clearly, the economy quickly recovered after a spate of hurricanes wreaked havoc across the southern US states. Ultimately, the reading will increase expectations of an interest rate rise when the Federal Reserve meet in December.
The figure means that the American economy has posted two successive quarters of 3% annualised growth for the first time in three years. It had already been a good week for the dollar, but the increased chance of an interest rate rise saw the greenback pusher higher as it strengthened against the euro and sterling.
Today the monthly personal spending and income figures are released, while tomorrow sees the release of consumer confidence. However, Wednesday is the week’s highlight, with the employment change, manufacturing PMI and Fed interest rate decision on the calendar. A rate hike is not expected on Wednesday, but any allusions to future policy could further bolster the dollar’s position.
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