Final U.S. Q3 GDP Revised Up To 3.5%, USD Reaction Limited
Final US Q3 GDP revised up to 3.5% from 3.2%, but USD reaction limited. Personal spending/income miss excuse for correction. EUR touches 1.0500. Cable dips under 1.2300.
A choppy session with limited movement in the USD pairings, but some moderation seen through the day. The final reading of Q3 US GDP was better than expected at 3.5% (3.3% consensus), but later in the day, personal income and spending both missed on expectations to give the market a little more balance.
EUR/USD managed to take out resistance in the 1.0470-85, but 1.0500 sellers are now capping. Gains here have been largely led by EUR/GBP which has been further bolstered by stop chasers eyeing a move through 1.2300. The figure level has held well for now, but no significant upturn anticipated with the final Q3 growth stats in the UK due for release tomorrow morning.
In the JPY, consolidation seen across the board, and driven by the USD rate, buoyant UST yields maintain better levels here. USD/CAD pushed up through 1.3500, but the move was short lived, holding off modest resistance at 1.3525-30.
This was sparked off by the weaker inflation numbers, but retail sales (Oct) were better than expected, while the turnaround in oil prices also contributed to the pullback. Losses in AUD and NZD are also slowing, largely as a function of an overstretched USD, but not major correction seen this week, and looks unlikely going into the last day of trading before the Xmas break.