Mixed US Economic Data Had Little Impact on the Dollar

Market Reviews

The US dollar shows little response to mixed US economic data. Personal income rose 0.3% in November, below expectations of 0.4%. Spending rose by 0.6%, exceeding expectations of 0.5%. Core PCE accelerated to 1.5% yoy. Orders for durable goods increased by 1.3%, below the forecast of 2.2%.

The euro rebounded against the dollar after the morning drop caused by news of the victory of separatists in the elections in Catalonia. The euro was supported by positive data for Germany and France. German GfK consumer confidence increased to 10.8 in January from 10.7 in December, as expected. The Canadian dollar weakened after disappointing data. In October, GDP increased by 0.0% mom, below expectations 0.2% mom.

The UK GDP was completed at 0.4% quarter-to-quarter in the third quarter, unchanged. Total business investment was completed at the level of 0.5% quarter-to-quarter. The UK current account deficit declined to 22.8 billion pounds from 25.8 billion pounds in the second quarter.