USD
The Dollar saw limited gains during Thursday’s session despite the US economy
expanding more than forecast in the third quarter, validating the optimism that
prompted Federal Reserve policy makers to stop pumping money into financial
markets. Gross domestic produc (GDP) grew at a 3.5 percent  in the three
months ended September after a 4.6 percent gain in the second quarter, it
marked the strongest back-to-back readings since the last six months of 2003.

USD
The Dollar saw limited gains during Thursday’s session despite the US economy
expanding more than forecast in the third quarter, validating the optimism that
prompted Federal Reserve policy makers to stop pumping money into financial
markets. Gross domestic produc (GDP) grew at a 3.5 percent  in the three
months ended September after a 4.6 percent gain in the second quarter, it
marked the strongest back-to-back readings since the last six months of 2003.

Reports confirmed government outlays and a shrinking trade deficit boosted
growth last quarter, buying time for consumer spending in the world’s largest
economy to strengthen as fuel prices drop and hiring picks up. Fed officials
yesterday cited the improvement in the job market in deciding to end their bond-buying
program and stay on course toward interest rate increases next year.

Also out for the US was unemployment claims which revealed fewer Americans
filed applications for unemployment benefits over the past month than at any
time in more than 14 years, a sign the strengthening U.S. economy is buoying
the labour market. 

EUR
The Euro struggled yesterday after inflation figures revealed the German
Preliminary consumer pricing index (CPI) turned negative. The CPI has
registered -0.3% when measured month on month, this represents a further fall
on last months figure and also came in well below market analyst’s estimates
for a minor deflationary figure of -0.1%. 

Year on year the CPI has managed to hold onto its 0.8% growth reading, this
provided some negative surprise as a figure of 0.9% was also expected this
month, raising concerns over the health of the economy. 

Key Announcements:
10:00 EUR: Eurozone inflation (Oct) Expected to rise from 0.4% to
0.3%  

Our dealers are available via e-mail ([email protected]) or by phone (020 7220 8181).