Dollar ends flat despite mildly upbeat U.S. data
The greenback surrendered the gains made after release of mildly upbeat U.S. GDP and ended the day broadly flat against majority of its peers on weak U.S. income data.
The Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 3.5% in the three months ended September 30, up from a previous estimate of 3.2% and above expectations for a reading of 3.3%.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2% after an upwardly revised 0.4% increase in October. Economists polled by Reuters had forecast consumer spending advancing 0.3% last month. Spending in October was previously reported to have risen 0.3%.
Versus the Japanese yen, despite trading sideways in Asia and Europe, the greenback rose briefly to session high at 117.88 at New York open after the release of slightly better-than-expected U.S. GDP and durable goods. However, dollar pared its gains and tumbled to session low of 117.27 in New York morning, later price edged higher to 117.69.
The single currency traded with a firm bias in Asia and gained to 1.0470 in European morning on cross-buying vs sterling before dropping to 1.0429 at New York open after release of U.S. economic data. However, euro found renewed buying there and rallied to an intra-day high at 1.0499 in New York morning but lack of follow-though buying quickly led to long liquidation, price later retreated to 1.0432.
The British pound briefly edged up to 1.2379 in Asian morning before falling to 1.2328 in European morning on cross-selling of sterling especially vs euro, cable remained under pressure in New York session and fell to a 1-moonth low at 1.2277 near New York close.
In other news, sources said 'ECB aims to wait until after Germany's Sep election b4 next policy move; ECB sees no option off table if economy worsens; ECB to buy as few bonds as possibly below dep rate fm Jan.'
On the data front, The Commerce Department said on Thursday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2 percent after an upwardly revised 0.4 percent increase in October. Economists polled by Reuters had forecast consumer spending advancing 0.3 percent last month. Spending in October was
previously reported to have risen 0.3 percent.
Data to be released on Friday:
Japan market holiday, Germany consumer sentiment, France consumer spending, UK GDP, current account, Canada GDP, U.S. new home sales and University of Michigan consumer sentiment.