© Reuters. The dollar hits a peak daily after the GDP
Investing.com – The dollar has reached its highest journlier against a basket of other major currencies on Wednesday after data showing that u.s. economic growth was faster than initially estimated in the fourth quarter.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.35% to 89,26 at 08h53 (12h53 GMT), extending its rebound from the lowest of five weeks of 88,53.
The Commerce department reported that the u.s. economy grew by 2.9% on an annual basis during the last three months of 2017, up from a previous estimate of 2.5%, but slowing slightly from 3.2% in the third quarter.
The consumption expenditures have been revised upwards to 4.0% from 3.8% in the second estimate, which was the largest increase in three years.
The data have left the door at a pace a little more aggressive interest rate hikes by the federal Reserve this year. The Fed has raised its rate for the first time this year last week and maintained its forecast of three rate hikes this year.
The fears over the prospect of a trade war will hit the market on Wednesday after the chinese newspaper “Global Times” has announced that Beijing would soon announce a list of tariffs on american exports to China. Us tariffs on chinese imports.
The reports of the american president Donald Trump on the business practices of China with the German chancellor Angela Merkel and French president Emmanuel Macron have also undermined hopes that the risk of a trade war were diminishing.
Investors ‘ fears that trade tensions between the two largest economies in the world will be able to get out of control and strike a blow to the global economy.
The dollar jumped against the yen, with the USD / JPY advancing 0.78% to 106,16.
The yen remained under pressure after the governor of the Bank of Japan, Haruhiko Kuroda, has declared on Wednesday that the central bank should stick to its current framework of monetary easing to achieve its inflation target.
The euro fell to a more everyday low, with the EUR / USD down 0.14% to 1,2386.
The british pound was also lower, with GBP / USD sliding 0.11% 1,4141.
Investors look to us data on home sales later in the day.