US growth data looms

November 28, 2018

A few pieces of significant data being released tonight, with focus again centred on the US.

The USD continues to strengthen, pushing down paired currencies. The EUR/USD opened the session at $1.13256 and remained steady early, rising to a high of $1.13341. Mid-session trading saw the pair decline until it hit a low of $1.12764 late in the day. It has come off those lows and is currently trading at $1.12930. The GBP/USD suffered the same fate as the euro after opening the day at $1.27996 and was flat in early trading, bumping up to a high of $1.28189. The pair tumbled soon after, with a short live bounce-back not enough to see the pound drop to a low of $1.27243. It is not far off that low, currently trading at $1.27384.

The Dow continued its strong comeback, after what looked like being a pull-back mid-session. The index opened at 24,513.18 and climbed early, before spiking to a near-session high of 24,759.05. That spiked was short-lived as the Dow gave up those gains and turned negative as it hit a low of 24,409.20. Just as it looked like the Dow would keep heading south, it rebounded and rallied late into the day, peaking at 24,787.40 before closing at 24,779.40. The Dax started the session with a flurry, but it was all to no avail as the German index closed slightly lower. The Dax opened at 11,343.25 and shot up to a high of 11,441.20 in the first hour of trade. Those gains were quickly given up and the Dax began its slide, bottoming out at 11,263.60 midway through the day, before closing at 11,330.70.

The day ahead contains the release of some significant data, with the most important being the US Prelim GDP figure. As the best indicator of economic growth, this figure is always keenly eyed by markets. The expectation is for the economy to grow by 3.6%, up from 3.5% at the time of the last GDP release. Other data set for publication include:

NZ – RBNZ Governor Adrian Orr speaks

Australia – Construction Work Done

UK – Bank Stress Test Results, BoE Financial Stability Report, BRC Shop Price Index

Europe – Credit Suisse Economic Expectations, M3 Money Supply, Private Loans, German GfK Consumer Climate

US – Good Trade Balance, Prelim GDP Price Index, Prelim Wholesale Inventories, New Home Sales, Richmond Manufacturing Index, Crude Oil Inventories, Fed Chair Jerome Powell speaks

 

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