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23 Dec 2014
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Dollar strengthens again after US GDP is revised higher

United States Dollar: GBP weakened yesterday, largely in response to GDP figures being revised lower and UK current account data printing wider than expected. The final GDP reading showed that the economy grew by 0.7% in the third quarter whilst the current account widened in the third quarter to £27bn. Later in the day US Final GDP showed that the economy grew at 5.0% in the third quarter, up from a previous estimate of 3.9%. Health-care spending contributed 0.52%, up from previous estimates of 0.22%, which went some way to explaining the jump. Despite weaker than expected US durable goods orders, the dollar firmed up and GBP/USD traded to a low of 1.5485. Since then, it’s been flat and opens this morning at 1.5525.

We expect a range today in the GBP/USD rate of 1.5480 to 1.5580

Euro: EUR/USD dropped gradually throughout the day on Tuesday as the dollar strengthened broadly. It fell to a low of 1.2165 as rumours also started to circulate that the ECB will be ready to begin a program equivalent to full blown QE in the early part of the year next year. It has sat pretty still throughout the Asian session and opens this morning at 1.2190.

We expect a range today in the GBP/EUR rate of 1.2700 to 1.2800

Aussie and Kiwi Dollars: AUD/USD and NZD/USD have both been pretty quiet over the last 12-24 hours and trade at .8110 and .7730 currently. With trading conditions a lot thinner today we could yet still see some volatility but there’s no remaining top tier data before the public holidays to suggest this could be the case.

We expect a range today in the GBP/AUD rate of 1.9100 to 1.9225

We expect a range today in the GBP/NZD rate of 2.0050 to 2.0200

Data Releases

AUD: No data

EUR: No data

GBP: No data

NZD: No data

USD: Unemployment Claims, Crude Oil Inventories

If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex

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23 Dec 2014
Share

Dollar strengthens again after US GDP is revised higher

United States Dollar: GBP weakened yesterday, largely in response to GDP figures being revised lower and UK current account data printing wider than expected. The final GDP reading showed that the economy grew by 0.7% in the third quarter whilst the current account widened in the third quarter to £27bn. Later in the day US Final GDP showed that the economy grew at 5.0% in the third quarter, up from a previous estimate of 3.9%. Health-care spending contributed 0.52%, up from previous estimates of 0.22%, which went some way to explaining the jump. Despite weaker than expected US durable goods orders, the dollar firmed up and GBP/USD traded to a low of 1.5485. Since then, it’s been flat and opens this morning at 1.5525.

We expect a range today in the GBP/USD rate of 1.5480 to 1.5580

Euro: EUR/USD dropped gradually throughout the day on Tuesday as the dollar strengthened broadly. It fell to a low of 1.2165 as rumours also started to circulate that the ECB will be ready to begin a program equivalent to full blown QE in the early part of the year next year. It has sat pretty still throughout the Asian session and opens this morning at 1.2190.

We expect a range today in the GBP/EUR rate of 1.2700 to 1.2800

Aussie and Kiwi Dollars: AUD/USD and NZD/USD have both been pretty quiet over the last 12-24 hours and trade at .8110 and .7730 currently. With trading conditions a lot thinner today we could yet still see some volatility but there’s no remaining top tier data before the public holidays to suggest this could be the case.

We expect a range today in the GBP/AUD rate of 1.9100 to 1.9225

We expect a range today in the GBP/NZD rate of 2.0050 to 2.0200

Data Releases

AUD: No data

EUR: No data

GBP: No data

NZD: No data

USD: Unemployment Claims, Crude Oil Inventories

If you want instant updates on movements in the FX market and fast access to the UKForex daily commentary, follow us on twitter at http://twitter.com/ukforex or @ukforex

Learn more about