US Dollar Continues to Grow

The US dollar remains the strongest currency supported by positive employment data. Initial jobless claims fell by 2k to 236 thousand for the week ending December 2, below the forecast of 241 thousand. This is also the lowest level in five weeks.

The euro and the British pound also remain firm, despite the uncertainty of Brexit. Negotiations on Brexit have not yet moved to the second stage, and analysts are beginning to doubt that Britain will be able to agree with the EU on the transition period. They warn that this creates risks for the pound.

At the beginning of the session, the pound was supported by data on housing prices in the UK. House prices in the UK rose more than expected in November, the data published by mortgage lender Halifax and IHS Markit showed. On a monthly basis, house prices rose 0.5%, after rising 0.3% in October. This was the fifth increase in a row.

Eurozone published the final data on GDP for the 3rd quarter, according to which the euro area economy expanded in the third quarter, mainly with the support of investments and exports. Gross domestic product grew by 0.6%. On an annual basis, GDP increased by 2.6%.