Wednesday, 08 April 2015 03:58

Dollar strengthens after unexpected GDP growth

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Dollar strength continues the next day after the Bureau of Economic Analysis reported yesterday jump in quarterly growth of 3.9% which was earlier expected at 3.3%. Increased spending by households and companies boosted the economy.

Asian shares gained today in early trading on resilient U.S. economy. Yesterday S&P also changed a little after the GDP data but the gain offset by the fall in consumer confidence which fell to 88.7 for Oct from 94.1 in Sept. Consumers are bit concerned about the labor market and business condition.

Dollar index which measures the performance of dollar against six major currencies gained by 0.02% to 87.98. Except JPY all other currencies are little weak against USD. We may see further strength in dollar if upcoming data shows better than expected results.

Today U.S. census Bureau will release Durable and Core Durable Goods data which are expected to improve a little. Personal Spending and Personal Income is also expected to show little improvement.

Market may remain in focus of OPEC meeting today as abundant supply has pushed prices to multi-year low. Crude oil prices have come under pressure before the meeting outcome.

 

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