On Tuesday, the greenback increase, as forex traders continued to anticipate a strong interest rate increase from the Federal Reserve in Washington D.C. this December.
The dollar closed up on the US Dollar index.
The EUR/USD declined, closing at 107.21, a decline of 0.40%.
The GBP/USD declined, finishing the day at 1.2676, a decrease of 0.44%.
The USD/JPY was, by contrast, increase to 113.98, a surge of 0.15%.
“Influencing the price of that currency pair was Monday’s news that Japan’s SoftBank was poised to invest $50 billion in the U.S., creating upwards of 50,000 jobs, in the coming year.”
President-elect Donald Trump broadcasted the news at Trump Tower in New York City after meeting with the company’s CEO, Masayoshi Son, a Japanese technology investor and billionaire, and detailed it last night during a rally in North Carolina.
On the social media site Twitter Inc . (NYSE: TWTR), the president-elect proclaimed that Son told him that Softbank “would never do this” if Trump had not won the presidential election against former U.S. Secretary of State Hillary Clinton.
On Additional News
The Aussie declined in Asia on Wednesday as 3rd quarter GDP posted an unexpected drop.
AUD/USD was quoted at 0.7423, down 0.51%, while USD/JPY increased 0.22% traded at 114.72.
The U.S. dollar index, which gauges the greenback compared to a basket of currencies, increased 0.07% to 100.58.
In Australia a busy data day with the AIG construction index for November at 46.6, increase slowly from 45.9 and 3rd quarter GDP down 0.5%, well below the 0.3% increase seen quarter-on-quarter and at a 1.8% 2.5% pace year-on-year, compared to an increase of 2.5% expected.
The GDP decline, the biggest since the year 2008, is likely one of the biggest prediction misses by the Reserve Bank of Australia, which may have expected GDP progress of approximately 0.5%, according to calculations done by economists. While the Reserve Bank of Australia expects GDP to rebound in the 4th quarter, the softer-than-expected results will put additional emphasis on approaching labor market data and lead to an explicit easing bias from current bias which is tilted towards neutral.
Suddenly, the dollar increase on irresistible expectations of the first rate hike in a year by the Federal Reserve the upcoming week.
In the U.S., data presented that the trade deficit broadened to a four month peak of $42.6 billion in October from a revised $36.2 billion in September, as imports increased to the highest level in 14 months.
On another report presented that the labor productivity rallied in the 3rd quarter, with the fastest rate of development in two years. Factory orders increase to 2.7%, more than the 2.6% increase seen MoM for October.
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