US GDP Revised Up To 3.3% – USD Extends Gains

The US economy grew at an annualized rate of 3.3% in Q3 2017 according to the updated estimate. This is slightly better than 3.2% that was expected and above 3% originally reported. Q2 saw 3.1%.

Corporate profits are up but not as much as beforehand. 4.3% q/q, 5.4% y/y. Personal consumption is somewhat on the softer side. with 2.3% against 2.4% originally reported. Business investment was revised up to 4.7% against 3.9% originally published. All in all, this is a positive report.

The US dollar was already gaining quite nicely ahead of the publication and it extends its gains now.

The US was expected to upgrade the assessment of GDP growth in Q3 to 3.2% from 3% originally reported. This is the second release out of three. Significant revisions are not uncommon.

The US dollar has been slightly higher, but the picture is a bit more mixed:

EUR/USD stabilized around 1.1840 after falling off the highs above 1.19. The pair is struggling with 1.1820.

GBP/USD was rising quickly to 1.34, thanks to hopes about an agreement on the divorce bill. These celebrations may have come too early. The pound is currently unable to hold onto 1.34.

USD/JPY was up to 111.60 with markets ignoring yet another firing of a North Korean missile. It is now rising above 112 but finds it hard to settle above this level.

AUD/USD traded around 0.7575, dropped from the 0.76 level. It is lower, around 0.7570.

USD/CAD extended its gains, reaching 1.2835. The pair advances a bit.

Later today we will hear from outgoing Fed Chair Janet Yellen, testifying in Congress. The incoming Fed Chair Jerome Powell faced lawmakers on Tuesday and sent a message of continuity, defending the decisions of the central bank.

Data so far from the US has been positive, with new home sales reaching a decade high and other figures also exceeding early expectations.