US Dollar is trading mixed ahead of the final US GDP statistics.
The US Dollar (USD) is trading roughly flat on Thursday following a fairly quiet Asian session. Technically, the US Dollar Index (DXY) is set to break out soon, and weaker liquidity ahead of Christmas could lead to significant swings as the economic calendar picks up momentum at the end of the week.
On the economic front, some significant data is due to be released on Thursday. All The third estimate of the US Gross Domestic Product (GDP) number will be closely watched. Although little movement is expected in this third reading, it may serve as a reminder to markets that the US economy is in good form, placing the US Dollar back in favor of investors’ final wagers before the New Year.
Daily Market Movers: Big Data Is Coming
At 13:30 GMT, a large amount of data will be released: the third estimate of US Gross Domestic Product (GDP). Economic growth in the third quarter is expected to be unchanged at 5.2% annualized. Personal Consumption Expenditures Prices for the quarter are predicted to be 2.8%, with the core measure at 2.3%.
Weekly Initial Claims are projected to rise. Increased from 202,000 to 215,000.The number of Continuing Claims is predicted to increase from 1.876 million to 1.888 million.
The Kansas Fed Manufacturing Activity Index for December will be released at 16:00 GMT. The previous value was -3.
Equities are looking for direction after a sell-off in US equities in the final trading hour on Wednesday. Profit taking was evident in Japanese equities, with both the Nikkei and Topix indexes losing more than 1%. European indices are 0.50% down, while US equity futures are 0.50% higher.
According to the CME Group’s FedWatch Tool, markets are pricing in an 87.6% possibility that the Federal Reserve will hold interest rates steady at its January 31 meeting. Around 12.4% expect the first cut to occur soon.
The benchmark 10-year US government bond The yield on the 10-year Treasury note is approaching 3.86%, the lowest since the summer.
