NEW YORK (Reuters) – Investors trimmed dollar positions during the Christmas holiday lull on Wednesday, pulling the greenback down from its highest point in nearly nine years after strong U.S. economic growth data on Tuesday solidified views of coming Fed rate increases.
The dollar retreated by 0.1 percent to 89.924 against a basket of currencies .DXY after Tuesday’s data showed U.S. third quarter gross domestic product grew at an annualized 5.0 percent rate.
NEW YORK (Reuters) – The dollar strengthened on Tuesday after a revised third-quarter U.S. gross domestic product report blew past expectations to register the fastest pace of growth in 11 years.
U.S. economic growth in the third quarter was revised up to 5 percent from 3.9 percent. Some tempering of activity, however, is expected in the fourth quarter after non-defense capital goods orders ex-aircraft, a closely watched proxy for business spending plans, was unchanged in November after dropping in October.
NEW YORK, Dec 22 (Reuters) – The dollar recovered ground
late on Monday on rising U.S. Treasury yields that increased the
greenback’s advantage over the euro, pushing it back down to a
2-1/2 year low in thin pre-holiday trade.
“We think the yields are the story here for the dollar. The
two-year Treasury auction of just over 70 basis points is the
highest since mid-2011, and that’s widening the dollar’s
front-end yield advantage and driving it higher,” said Vassili
Serebriakov, currency strategist at BNP Paribas in New York.
NEW YORK (Reuters) – The euro recovered from two-year lows against the U.S. dollar on Monday, with traders citing limited volumes in the pre-holiday market for the narrow ranges and the greenback’s mixed performance.
“Not everyone has checked out of the markets just yet. We have tomorrow’s slate of U.S. data to keep in mind,” said Greg Anderson, global head of FX strategy at BMO Capital Markets in New York.