US Dollar May Rise on Yellen Speech, US 3Q GDP Upgrade
- Euro unlikely to find lasting strength in German inflation uptick
- US Dollar may rise on Fed’s Yellen speech, US 3Q GDP upgrade
- British Pound continues to rise on hopes for Brexit deal progress
German CPI figures headline the data docket in European trading hours. The headline on-year inflation rate is expected to edge up to 1.7 percent. An upbeat result may mean relatively little for the Euro however with ECB policy seemingly on auto-pilot in the near term.
A revised set of third-quarter US GDP figures as well as a speech form Fed Chair Janet Yellen then enter the spotlight. The US Dollar may rise if the outgoing FOMC chief signals September’s three-hike forecast for 2018 still seems appropriate. An expected growth rate upgrade – from 3 to 3.2 percent – might also help.
The British Pound traded broadly higher in Asia Pacific trade, building on yesterday’s advance. Optimism follows reports that negotiators have reached a deal on the Brexit “divorce bill” that the UK will pay to meet its existing EU obligations before leaving the regional bloc.
The Australian and New Zealand Dollars traded broadly lower in a move that seemed corrective following the prior session’s gains. The Euro was also in retracement mode, edging up having come under pressure yesterday after the OECD said that an ECB rate hike probably won’t happen until 2020.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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