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Dollar Mixed After U.S. GDP Data

Dollar Mixed After U.S. GDP Data
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The U.S. dollar showed mixed trading against its major counterparts in the European session on Thursday, after a data showed that the nation’s economic activity unexpectedly grew faster than previously estimated in the fourth quarter of 2020.

Data from the Commerce Department showed that real gross domestic product surged up by 4.3 percent in the fourth quarter compared to the previously reported 4.1 percent jump. Economists had expected the pace of GDP growth to be unrevised.

The Commerce Department said the stronger than previously estimated growth primarily reflected an upward revision to private inventory investment that was partly offset by a downward revision to non-residential fixed investment.

Data from the Labor Department showed that U.S. weekly jobless claims pulled back much more than expected in the week ended March 20.

The report said initial jobless claims slid to 684,000, a decrease of 97,000 from the previous week’s revised level of 781,000.

Economists had expected jobless claims to decline to 730,000 from the 770,000 originally reported for the previous week.

The greenback rose in the Asian session amid optimism over a stronger U.S. economic recovery.

The greenback climbed to a 1-week high of 109.17 against the yen, from its early low of 108.71, and held steady thereafter. The pair had closed Wednesday’s deals at 108.72.

The greenback appreciated to 1.1791 against the euro, its biggest level since November 12, 2020. The pair was worth 1.1812 when it closed deals on Wednesday. Next key resistance for the greenback is seen around the 1.16 level.

Data from market research group GfK showed that German consumer sentiment is set to improve in April after the easing of the hard lockdown and falling infection rates at the time of the survey.

The forward-looking consumer sentiment index rose to -6.2 in April from revised -12.7 in March. The reading was forecast to climb to -11.9.

The greenback retreated to 1.3731 against the pound, from an early 1-1/2-month high of 1.3670, and held steady thereafter. The pound-greenback pair had ended yesterday’s trading session at 1.3684.

The greenback pulled back to 0.9350 against the Swiss franc, from early more than a 2-week high of 0.9376, and held steady thereafter. At yesterday’s trading close, the pair was quoted at 0.9356.

Swiss central bank maintained its expansionary monetary policy and the pledge to intervene in the forex market to prevent currency gains.

Policymakers of the Swiss National Bank retained the policy rate and interest on sight deposits at the SNB at -0.75 percent, as widely expected.

The material has been provided by InstaForex Company – www.instaforex.com