The U.S. dollar saw strong gains on Friday morning as the U.S. Department of Commerce reported annualized Q3 growth of 3%, beating the projected 2.6%. This reading reinforced the likelihood of a U.S. rate hike in December, although it should be noted that the chances of a key rate increase at the Federal Reserve’s meeting on Wednesday are practically nil.
Surprisingly, the U.S. dollar reversed course on Friday and closed out trading having given up all its gains on the day. This reversal was triggered by the release of a report indicating that President Donald Trump is planning to appoint Fed governor Jerome Powell to head the organization. Powell is not seen as a fan of tightening monetary policy.
Across the Atlantic, the euro was under pressure after Catalonia declared its independence from Madrid. This decision led Spanish Prime Minister Mariano Rajoy to strip the Catalan government of its powers and organize elections in December.
Today, we’ll be keeping an eye on Personal Income and Personal Consumption Expenditures for September in the United States.
Yusuf Kocagozli
Range of the day: 1.2775 – 1.2900