The U.S. dollar was seen trading on the backfoot amid a rather busy day. The economic data from the U.S. showed that the economy advanced by 4.2% during the second quarter. The second revised estimates were higher than the initial estimates which showed a 4.1% increase.
However, other economic data was mixed. The pending home sales index fell 0.7% in July according to data released by the National Association of Realtors (NAR).
In the European trading session, the Pound sterling managed to get a boost after the EU’s Chief negotiator, Michel Barnier said that he was prepared to offer the U.K a trade deal that was never before offered a third country.
The remarks stoked optimism just a few days after it was evident that the Brexit talks would miss the October deadline.
The economic calendar today will see the release of the flash inflationestimates from Germany and Spain. Germany’s inflation is expected to ease, while consumer prices in Spain are expected to remain steady.
The NY trading session will kick off with the release of Canada’s monthly GDP report. Economists forecast that the GDP advanced 0.1% following a strong 0.5% increase the month before.
The U.S. Core PCE price index will no doubt generate headlines as the Fed’s preferred inflation gauge. Core PCE is expected to rise 0.2% on the month, advancing from 0.1% the month before. Personal income and spending data are also on the cards.
