Single Currency Drops
The single currency has weakened. Euro/Dollar pair lowered 0.25% to trade at 1.1819. German Retail Sales fell 1.2%, marking the 3rd drop in 4 months. Unemployment change reduced 18K. Eurozone Consumer Price Index Flash Estimate increased to 1.5%. Today, the US will publish Personal Spending and jobless claims. Tomorrow, Germany and the eurozone will announce manufacturing PMI numbers.
Greenback is strong as US Preliminary Q3 Gross Domestic Product marked solid 3.3%, also the fastest growth pace in three years. Business spending picked up and Janet Yellen acknowledged that the economic expansion is very strong. Future Fed Chair Jerome Powell delivered his speech before Senate Banking Committee. He confirmed the case of a rate lift in December and talked about the idea of eased regulations for small banks and more restriction for big ones. Powell added that inflation will rise and that current policy fits economic condition. When asked about the tax bill, he didn’t give any answer. His policy isn’t expected to differ from Janet Yellen’s one.