Daily Afternoon Report 24/11/2015

Daily Afternoon Report 24/11/2015

The dollar remained lower against the other major currencies today, but still close to the previous session’s eight-month peak after data showed that the U.S. economy grew more than initially estimated in the third quarter. The U.S. Commerce Department reported on Tuesday that gross domestic product grew at an annual rate of 2.1% in the three months to September, in line with expectations. Preliminary data initially pegged U.S. growth at 1.5% in the third quarter. The U.S. economy grew 3.9% in the second quarter. The upbeat data added to expectations that the Federal Reserve is on track to raise interest rates next month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.20% at 99.64, still close to Monday’s eight-month peak of 100.06.

Elsewhere, the euro found some support after the German research institute Ifo said its Business Climate Index rose to a 17-month high of 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2. But gains were held in check since European Central Bank President Mario Draghi said on Friday that the bank is ready to act quickly to boost inflation in the eurozone and can also change the level of its deposit rate to boost the impact of quantitative easing.

Also, Sterling weakened after Bank of England Governor Mark Carney said on Tuesday that he did not know when interest rates should start to rise.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.20% at 99.64, still close to Monday’s eight-month peak of 100.06.