EUR/USD: German Flash Gross Domestic Product
The Euro jumped against the US Dollar on surprisingly strong German GDP data. However, the trend was reversed as the next data showed 0.6% growth pace in the EU. The EUR/USD currency pair added 21 base points or 0.18% to appreciate further to the 1.1720 mark.
Destatis reported that German economy expanded at a better-than-anticipated pace of 0.8% in the third quarter, fuelled by higher capital investment and exports. The Euro zone’s GDP growth was stable at 0.6%, pointing to smaller differences in growth figures between the member states. In this regard, the 19-country monetary region is expected to grow at the strongest pace in a decade this year, which would bolster the case for the ECB to start monetary policy tighthening.
GBP/USD: UK Consumer Price Index
The Sterling fell against the US Dollar on disappoint UK consumer inflation report. The GBP/USD currency pair dropped 32 base points or 0.24% to make a double touch of the intraday low close to the 1.3090 mark. On Wednesday motning the pair was seen trading in the 1.3140 area, awaiting the other closely watched report on average earnings.
Britain’s consumer price growth held steady at 3.0% in October, while analysts’ forecasted it to expand 3.1% in the reported month. An unexpectedly steady inflation raised questions on how fast the Bank of England is likely to raise key interest rates. Meanwhile, the Bank argued that Brexit would damage the UK ability to expand as fast as previously without bearing excess inflation.
USD/CAD: US Producer Price Index
The Greenback rose slightly against the Canadian Dollar on the release showing higher-than-projected growth in the US producer prices. The USD/CAD exchange rate rose 10 base points to continue appreciation to touch daily high in the 1.2770 area.
The Labour Department revealed that the US Producer Price Index increased 0.4% over the month of October, surprising expectations for a weaker gain of 0.1%. The surge was driven by a rise in the cost of services. In addition, data showed steady acceleration in underlying produced prices, which encouraged projections for a gradual inflation growth and kept the Fed on track to make the interest rate hike in December.
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