US Dollar Strengthens Amid Euro’s Weakness

Forex News

The euro declines against major currencies, and loses more than 0.2% versus the US dollar against the backdrop of data on the victory of the parties favoring the independence of Catalonia, on the eve of elections to the local parliament. 96% of the ballot papers counted after the vote showed that the separatist parties got 70 seats out of 135 seats in the regional parliament of Catalonia.

The US dollar is strengthening in today's trading. The dollar index, which measures the US currency against a basket of six major competitors, rose by 0.2% to 93.450. During the week, it decreased by 0.5%. The news that Congress approved the most significant revision of the US tax code for three decades, also supported the currency. It is expected, that this reform will ensure at least a short-term recovery of economic growth.

The US data for the third quarter, published yesterday, showed that the economy grew at the fastest pace in more than two years, thanks to strong business spending. GDP growth in the third quarter was revised lower to 3.2% from 3.3%, and overall market inflation is still very favorable.