29/10/2018 – US Economy Outperforms

USD

Data released on Friday showed the U.S. economy grew at a faster-than-expected rate in the third quarter as inflation was kept in check and consumer spending surged, however the news did little to strengthen Dollar. The U.S. economy expanded at a 3.5 percent pace in the third quarter as consumer spending, which accounts for about 70 percent of the economy, unexpectedly accelerated to a 4 percent increase.

The data indicates a robust job market and lower taxes continued to propel demand, giving President Donald Trump an opportunity to showcase his policies heading into the midterm elections. At the same time, tariff-related bottlenecks and the trade war with China are headwinds for the nation’s second-longest economic expansion on record, while data suggests the boost from corporate tax cuts may be wearing off.

EUR

Alberto Bagnai, a prominent lawmaker of the ruling League party, said on Friday that the concern raised by European Central Bank chief Mario Draghi over the health of Italian banks was “improper”. Draghi warned on Thursday that a recent sell-off in Italian government bonds was set to dent the capital of Italy’s banks

Key Announcements

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