Upward Revision To GDP Data Lifts U.S. Dollar
29 August 2024 - 11:16PM
RTTF2
The U.S. dollar firmed against its major counterparts in the New
York session on Thursday, as stronger-than-expected GDP data for
the second quarter eased recession fears and reinforced
expectations for a rate cut in September.
Data from the Commerce Department showed that the surge by gross
domestic product in the second quarter was upwardly revised to 3.0
percent from the previously reported 2.8 percent. Economists had
expected the pace of GDP growth to be unrevised.
With the upward revision, the pace of GDP growth in the second
quarter showed an even faster acceleration compared to the 1.4
percent jump in the first quarter.
A separate report showed that first-time claims for U.S.
unemployment benefits edged slightly lower in the week ended August
24.
The report said initial jobless claims slipped to 231,000, a
decrease of 2,000 from the previous week's revised level of
233,000.
Economists had expected jobless claims to come in unchanged
compared to the 232,000 originally reported for the previous
week.
The data reduced recession fears and supported the probability
of a rate cut next month.
The greenback climbed to a 10-day high of 1.1055 against the
euro and a 3-day high of 1.3491 against the loonie, off its early
lows of 1.1139 and 1.3450, respectively. The currency is likely to
locate resistance around 1.06 against the euro and 1.38 against the
loonie.
The greenback touched 1.3145 against the pound and 145.55
against the yen, setting 6-day highs. It is poised to challenge
resistance around 1.27 against the pound and 147.00 against the
yen.
The greenback recovered to 0.6784 against the aussie and 0.6247
against the kiwi, from its early nearly 8-month lows of 0.6823 and
0.6299, respectively. The currency is seen finding resistance
around 0.63 against the aussie and 0.60 against the kiwi.
The greenback strengthened to a 6-day high of 0.8493 against the
franc, up from an early nearly 8-month low of 0.8400. Should the
currency strengthens further, it is likely to test resistance
around the 0.92 region.
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