According to the data published on Wednesday, the US economy continues to grow steadily, being at its highest level for the last three years, as the data on GDP clearly showed.
In accordance with the reading of the second revision of the data, U.S. GDP in the third quarter rose above forecasts and the first revision. The growth was 3.3% against the prior reading of 3.0% and the forecast of 3.2%. The data was really strong and demonstrated a strong economic growth, which, if retained, will have a significant impact on the decision of the Fed and continue to continue the cycle of raising interest rates, as economic growth will be accompanied by an increase in inflationary pressures, which the Federal Reserve fears so much, to act ahead of the expected timeframe.
In addition to the GDP values, the index of pending sales in the US real estate market also came out on Wednesday. The indicator significantly increased in October by 3.5% compared to the previous September value of -0.4%, while an increase of 1.0% was assumed.
Also yesterday, figures on consumer inflation in Germany were published, which grew at an annual rate of 1.8% against 1.6% and the forecast increase of 1.7%. In November, the indicator rose 0.3% against a lack of growth in October. On this wave, the market again raised hopes that the growth of inflation in the eurozone will push the ECB for an earlier exit from the stimulus measures.
The British pound remains in the growth phase on expectations of an early resolution of the dispute between Britain and the EU to pay for the country's withdrawal from the union. It is expected that this fee will be less than the previously announced 60 billion euros. If this is the case, then we should hope for continued local rally of the pound in the short term.
Today, important data will be published that will affect the currency markets - the values for consumer inflation in the eurozone and a number of inflationary indicators from the U.S., the center of which will be the basic price index of spending on personal consumption, which plays a significant role in the decision of the Fed on rates.
Forecast of the day:
The EURUSD pair is consolidating above 1.1850, pending the release of data on consumer inflation in the euro area, as well as a number of inflationary indicators in the United States. Positive data for the dollar may lead to a drop in price to 1.1800 after overcoming the mark of 1.1850.
The USDJPY pair has the potential to continue growing to 112.70 after having overcome the 112.00 mark.
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