Forex – Dollar Flat as GBP/USD Hits 2-Month Highs


Investing.com – The dollar traded roughly unchanged against a basket of major currencies as upbeat economic data and signs of progress on tax reform lifted sentiment but a surge in sterling weighed on upside momentum.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.03% at 93.17.

increased at a 3.3% annual rate in the July-September period, the Commerce Department said in its second estimate of GDP on Wednesday, beating a previous estimate of 3%.

rose 3.5% in October following a 0.4% decline in the previous month amid an uptick in housing activity. That beat economist forecast for a 1% rise.

The reports came as outgoing Federal chair Janet Yellen testified on the economic outlook before the Congressional Joint Economic Committee on Wednesday. Yellen reaffirmed the central bank’s stance on monetary policy of gradual rate hikes amid concerns that the economy would overheat. Yellen’s somewhat hawkish comments lifted Treasury yields, supporting an uptick in the dollar.

“We are not seeing undue inflationary pressure in the labor market, so our policy remains accommodative,” Yellen said. “But we do think it’s important to gradually move our policy rate toward what I’ll call a neutral level, which would be consistent with sustainably strong labor market conditions,” she said.

Upside in the dollar was capped, however, amid a rally in to a two-month high against the greenback on news reports of a UK-EU agreement on the so-called Brexit divorce bill.

If a settlement on the Brexit divorce bill is agreed, it paves the way for UK-EU discussions on an interim trade deal, easing the risk of “hard Brexit” – the UK exiting the EU without a trade deal.

added 0.26% to $1.1856, while fell 0.50% to £0.8829.

rose 0.36% to Y111.88, while rose 0.27% to C$1.2852.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments