The dollar strengthened across the board yesterday after the US released strong growth figures in the shape of its preliminary GDP figure. Gross domestic product, the value of all goods and services produced, rose at a 3.7 percent annualized rate, exceeding all estimates
The US economy grew more than expected in the second quarter on bigger gains in consumer and business spending shows the US is back on track and gives further optimism on the Federal Reserve hiking rates.
In another major data release, the US also released positive jobs data with unemployment claims falling to a three week low. Demand for skilled workers is picking up as the unemployment rate falls, Convincing hiring managers to keep staffing levels consistent with sales.
Pay raises, alongside strengthening job security will help to provide a bigger boost to consumer spending in the US which accounts for almost 70 percent of the economy. Another report Thursday from the Commerce Department showed a bigger advance in household purchases in the second quarter than previously estimated. A 3.1 percent increase in spending helped boost gross domestic product to a 3.7 percent gain in the three months ended in June.
09:30 – GBP – Second estimate GDP is forecast to remain unchanged at 0.7%.