US Dollar Trading Strong Against Major Peers on Release of Upbeat Economic Data
Arslan Butt • 1 min read
At the start of a brand new trading week, the US dollar is trading steady following the release of optimistic economic data from the US over the previous week. At the time of writing, the US dollar index DXY is trading at around 97.64.
According to latest estimated by the Commerce Department, the US economy continued to grow at 2.1% in Q3 2019, the same figure as in November. Despite concerns about the continued trade war with China driving worries of a recession, the US economy continues on the path of the longest expansion on record, even if at a moderate pace.
The US dollar also received some support after consumer spending increased by 0.4% in November over increased spend on motor vehicles and healthcare. The dollar has also remained strong ever since the US and China announced their plans to sign the phase one trade deal soon.
This development helped lift the mood in the markets, as it signaled that the US was to suspend its decision to hike tariffs on Chinese imports once again. Consumer goods imported from China were spared increased duties during the holiday season, improving the market sentiment.