The dollar rose to its highest in more than a week against a basket of major currencies on Thursday, boosted by the Federal Reserve’s outlook for more rate hikes beyond this year. Adding to the move higher was euro weakness on worries about the Italian budget.
On the data front yesterday, we saw the release of U.S. Real gross domestic product (GDP) which confirmed the U.S. economy grew as expected in the second quarter, rising at its quickest rate in nearly four years. US growth was established at an annual rate of 4.2%, according to the final version of Q2 GDP, while for the three months to June, growth was revised to 3.3% from the previous estimate of 3.2%.
Today in the US we had the release of Personal Income for August missing expectations of 0.4 printing at 0.3%. Monthly Personal Consumption Expenditures (PCE) figures missed expectations, but the higher impact figure which is annualized PCE did meet consensus at 2%. Later this morning we have the Chicago Purchasing Managers' Index (PMI) and the Michigan Consumer Sentiment Index for September.