The U. S. dollar rose on Thursday, boosted by a positive read on economic growth that particularly lifted it against the euro and the yen.<\/b>
The dollar rose on Thursday, boosted, particularly against the euro and Japanese yen, by a positive read on U. S. economic growth.
The latest data on fourth-quarter U. S. gross domestic product showed the U. S. economy expanded at a 2.1% annualized pace in the last three months of 2016, above the initial estimate of a 1.9% annual rate. The report was the latest economic indicator to point to an improving economy, following reads on consumer confidence and the labor market. The number of Americans applying for first-time jobless benefits fell last week, but not by as much as some economists had expected.
Neil Mellor, currency strategist at BNY Mellon, said that while the GDP data had helped reassure dollar bulls, \u201cthe jury is still out as we come to grips with [President Donald] Trump\u2019s policy programs.\u201d
The buck fell against the British pound, however, which climbed as investors awaited the European Union\u2019s opening salvo in negotiations over the terms of the U. K.\u2019s exit from the trading bloc.
U. K. Prime Minister Theresa May triggered Article 50 of the Lisbon Treaty on Wednesday, formally beginning the U. K.\u2019s exit from the European Union nine months after the country shocked the world by electing to leave.
Investors are now waiting for the European Union\u2019s first draft document outlining its negotiating position, which is expected before the end of the week.
The British currency\u2019s recent strength has brought it close to a key technical level against the euro: The currency pair\u2019s 50-day moving average is about to move below its 100-day moving average, a phenomenon known as a \u201cdeath cross,\u201d according to Colin Cieszynski, chief markets strategist at CMC Markets.
\u201cThis means the pound is starting to seriously outperform,\u201d Cieszynski said. \u201cArticle 50 has been really good for the pound.\u201d
Still, it could face headwinds should the EU take a hard line during negotiations, or if Nicola Sturgeon, the first minister of Scotland, is successful in receiving approval for a second referendum on Scottish independence.<\/p>\n