Dollar Lifts On Positive Economic Data. The latest batch of U.S. data turned out better than expected, reviving some hope for another Fed rate hike in the coming months. The greenback gained a lift after the Commerce Department said on Wednesday that its second estimate of U.S. gross domestic product showed that the economy grew at an annual 3.0 percent annual in the second quarter, the quickest in more than two years. In addition, the ADP National Employment Report showed U.S. private-sector employers hired 237,000 workers in August for the biggest monthly increase in five months, driving expectations for a solid U.S. August non-farm payrolls figure. In the wake of such solid economic indicators, market expectations for the chances of a Fed rate hike in December may start to increase and support the dollar.
Sterling Might Have To Fall Further. The pound continued to slay during the U.S. trading session as traders unwound their Brexit shorts and picked up on stronger risk-on vibes.
Dollar Edges Higher Vs Yen. The dollar and yen were back in the winners’ circle as both lower-yielding currencies managed to end positive for the session. The dollar hit a two-week high versus the yen on Thursday, extending its gains after strong U.S. economic data bolstered expectations for a solid U.S. jobs report later this week. The dollar rose to as high as 110.545 yen, its strongest level since Aug. 16. It last changed hands at 110.51 yen, up 0.2 percent from late U.S. trade on Wednesday.
Euro Nurses Losses After 0.7 Pct Drop On Wednesday. The euro nursed its wounds after falling 0.7 percent against the dollar on Wednesday in its biggest daily percentage drop against the dollar in nearly four weeks. The euro edged up 0.1 percent on the day to $1.1890, having retreated from a more than 2-1/2 year high of $1.2070 set on Tuesday.
Gold Retreats As GDP Growth Revised Up. Commodities failed to hold on to their winnings, with precious metals giving up some of their previous safe-haven gains. Gold prices fell following the release of better-than-expected second quarter GDP data.
Gasoline Rallies, Oil Ends At A More-Than-1-Month Low. The improvement in risk appetite, combined with the weakening tropical storm Harvey and a larger than expected draw in crude oil stockpiles, boosted Black Crack prices. The hurricane making landfall again in Louisiana this time and reports that refineries farther west could reopen soon knocked the prices of crude and gasoline back a bit. Traders should note that news related to ports and pipelines reopening may also influence trading going forward.
Watch Out For:
08:00 am GMT: EUR Unemployment Data
09:00 am GMT: EUR Consumer Price Index
12:30 am GMT: USD Personal Consumption Expenditure
