Daily Morning Report 23.12.2016

The dollar was almost unchanged against the other major currencies on Friday, still hovering close to 14-year highs amid sustained optimism over the strength of the U.S. economy and as trading volumes were expected to remain thin ahead of the Christmas holiday.

The U.S. Commerce Department said on Thursday that gross domestic product grew at an 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%.

The greenback has been broadly supported since the Federal Reserve concluded its policy meeting last week by raising interest rates by 25 basis points and projected three more rate hikes for 2017.

Market participants were looking ahead to U.S. reports on new home sales and consumer sentiment for further indications on the strength of the economy.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 103.00, just off Tuesday’s fresh 14-year highs of 103.62.