After testing another “bottom”, the major currency pair is consolidating.
EURUSD continued falling and tested another low yesterday; right now, it is consolidating. The current quote for the instrument is 1.1218.
The “greenback” was once again supported by the news and statistics. The more economic data the US publishes, the clearer it can be seen that the American economy is doing great and can handle the monetary policy tightening. In the meantime, investors are already expecting three rate hikes before the end of 2022.
The statistics publishes yesterday showed that the second estimate of the US GDP was 2.1% q/q in the third quarter, and that’s better than expected. The third estimate might be even better.
The Durable Goods Orders dropped 0.5% m/m in October after losing 0.3% m/m the month before and against the expected reading of +0.2% m/m. The Core Durable Goods Orders added 0.5% m/m, which is quite good.
The labour market data was good. The weekly report on the Unemployment Claims showed 199K after being 270K the week before and against the expected reading of 259K. the actual reading is the lowest since the 1960s.
The Personal Income showed 0.5% m/m, better than expected, and smoothed the September decline a little bit. The Personal Spending showed 1.3% m/m, also above expectations. The fact that Americans are ready to spend money is positive for the country’s economy.
The US is celebrating Thanksgiving Day today, that’s why the market activity is lower than usual.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.