Euro Strengthened Versus Major Currencies

The euro recovered significantly against the major currencies after the release of strong data on the GDP of Germany and the Eurozone. The euro rose by 0.24% against the US dollar yesterday and closed at 1.1695 level. Germany's GDP growth rates accelerated to 0.8% in the third quarter, while 0.6% was projected. This could contribute to the decision of the ECB to tighten monetary policy in 2018.

The Japanese yen rose during the Asian session, helped by Japan's continued GDP growth. According to preliminary data, Japan's gross domestic product grew by 0.3% in seasonally adjusted terms in the third quarter of 2017, as predicted, but the increase was weaker than the previous 0.6%. In annual terms, GDP grew by 1.4%, which is higher than the forecast of economists 1.3%.

The Australian dollar fell sharply after the publication of a weaker than expected wage report in Australia. The wage price index increased by 0.5% in the third quarter. The growth of the indicator was lower than the forecast of economists, expecting an increase of 0.7%.