US dollar strengthened. GDP higher than previous estimate.

US dollar strengthened during European and North American sessions today. The EUR/USD hit its weekly low of 1.0912 and finished at 1.0931, which is 0.84% lower than the previous close. The currency pair dropped more than 1.8% this week.

Despite closing slightly lower today the major US indices ended this week with positive sign. DJIA, Nasdaq Composite and S&P 500 were up 1.5%, 1.91% and 1.57% this week respectively. The daily performance of these indices is mentioned below:

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  • DJIA closed at 16,639.97, down 0.34%.
  • Nasdaq Composite slightly rose finishing at 4,590.47.
  • S&P 500 declined by 0.19% closing at 1,948.05.

The US Commerce Department report released today showed that the GDP had grown at 1% annual rate in Q4, which is higher than the previous estimate of 0.7%. This data announcement can trigger the Fed to raise the interest rates sooner.

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Additionally, the US consumer spending increased significantly in January. It rose 0.5%, which represents the largest increase in 10-month period.

“Growth is rebounding, inflation is picking up and stocks have recovered about half the loss posted this year. Conditions are moving back toward supporting a rate hike,” said Joel Naroff from Naroff Economic Advisors.

Oil closed slightly lower today, however prices have increased significantly during the week. WTI Crude and Brent gained more than 10% and 6% this week.

WTI Crude finished at 32.84 USD/bbl today, down 0.70%. Brent Crude was trading at 35.19 USD/bbl as of 5:10 PM EST, which is 0.28% below the yesterday closing price.

 

 

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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