Dollar retreats despite US growth picking up in Q3
City Index December 20, 2012 10:15 PM
<p>The dollar has retreated in forex markets despite fresh reports showing US growth was father than first thought in Q3.</p>
The dollar has retreated in forex markets this afternoon (December 20th) despite official figures revealing the US economy has grown at a faster pace in the third quarter of the year than previously thought.
According to the Commerce Department, the nation's gross domestic product (GDP) expanded at an annualised rate of 3.1 per cent, when in November it was projected this figure would be 2.7 per cent in the three months to September 30th.
However, economists still anticipate much slower growth in the final three-month period of 2012, with Hurricane Sandy likely to have impacted on productivity, while the matter of the thus far unresolved fiscal cliff has impacted on confidence.
Indeed, it has been widely anticipated that quarter four will post a 1.5 per cent growth rate.
At 15:00 GMT, the dollar retreated by 0.3 per cent versus the euro to $1 buying €0.753, while it slipped by 0.1 per cent against the pound to £0.614.
Find forex trading strategies for the dollar at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.