The US Dollar edged higher despite the latest economic data which surprised with some disappointments. Though the Federal Reserve Bank recently hiked up its key rate, the timing of the next will be driven by upbeat data. On Tuesday, the latest reading on the Q3 GDP showed that the US economy grew at 2%, which is just shy of the first reading. Core inflation slightly beat expectations by rising to 1.4%. At the same time, resale figures for US homes fell 10.5% last month, the largest decline in more than five years.
As reported at 10:49 am (GMT) in London, the EUR/USD was trading at $1.0928, down 0.22%; the pair ranged from $1.0914 to $1.0955. The USD/JPY was trading at 120.9665 Yen, down 0.06%; the session low was set at 120.8900 Yen while the day’s high was set at 121.1350 Yen.
UK GDP Misses Expectations
In the UK, the latest reading of the economy showed Q3 growth slipping to 0.4% (QOQ) against analysts’ forecasts of 0.5%. On a year-over-year basis, Q3 growth fell to 2.1% against the consensus call of 2.3%. The Bank of England is still weighing the possibility of a rate hike and, like the Federal Reserve Bank, that decision will be driven by data. The GBP/USD pair was trading at $1.4879, a gain of 0.36% while the EUR/GBP was trading at 0.7342 Pence, down 0.61%.
