U.S. Data; Dollar Gains, Pound Steadies and other News

U.S. Data; Dollar Gains, Pound Steadies and other News

Update economic data points to the U.S. support for modest growth in the dollar.

After a 2.6% fall last week, the pound steadies.

Calm markets might be upset because of the North Korea tensions.

On Monday, after U.S. data pointed to robust economic growth, the dollar held firm at the start of the holiday-thinned week. After having suffered its biggest weekly fall in three years, the British pound found some stability.

Friday’s data showed that a U.S. economy is already in its longest expansion in history. As the year ended, the economy appears to have maintained a moderate pace of growth, and an active labor market supports it.

At a 2.1% annualized rate, Gross domestic product increased said the Commerce Department in its third estimate of third-quarter GDP. From November’s estimation, it was unrevised.

Market economist at Sumitomo Mitsui Trust Bank Ayako Sera said the U.S. economy appears to have stopped slowing.  He added that there are no signs it will hit a recession.

More than two-thirds of U.S. economic activity accounts for consumer spending, showed separate data. Last month, as households stepped up purchases of vehicles motor and spent more on healthcare, the indicator rose 0.4%.

 

Focus on Dollar

Dollar

It contrasted with a not-anticipated deterioration in German consumer sentiment.

On December 13, the euro hit a four-month high of $1.12. Now it retreated and stood at $1.10775.

The dollar hit a five-month low of 96.605 on Dec. 12. After that, it maintained its recovery but stood flat at 97.682.

The dollar traded at 109.47 yen against the yen. It’s up 0.04% from late U.S. levels. Earlier this month, the dollar touched a six-month high of 109.73.

A chief currency analyst at MUFG Bank Minori Uchida said that one thing worth considering is whether market players cut their (yen-short) positions before the holiday period.

These are the main news of the market today. Let’s wait and see what the next year will bring us.

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