- US economy slowed less than expected in Q3
- Fed expected to cut rates later on Wednesday
(New throughout, updates prices, marekt activity and comments to U.S. market open, new byline, changes dateline, previous LONDON)
The dollar gained on Wednesday after data showed that the U.S. economy slowed less than expected in the third quarter, and before the Federal Reserve is expected to cut rates for the third time this year.
Gross domestic product increased at a 1.9% annualized rate in the third quarter, as declining business investment was offset by resilient consumer spending and a rebound in exports, the government said in its advance estimate of GDP.
The data “pointed to below trend growth, but still relatively steady and pretty solid growth in the context of what’s going on in the rest of the world,” said Erik Nelson, a currency strategist at Wells Fargo in New York.
The dollar index jumped to a session high of 97.75 after the data, overturning earlier weakness that analysts said was partly attributable to month-end portfolio rebalancing. It was last 97.71, up from a low of 97.58 reached earlier on Wednesday.
Other data showed that U.S. private employers added 125,000 jobs in October, slightly above economists' expectations.
Investors are next focused on whether The U.S. central bank will indicate further rate cuts are likely at the conclusion of its two-day meeting, with a cut today viewed as a done deal.
Fed policymakers are divided on the path of rates. A cut today pared with hawkish comments on the economic outlook should support the greenback.
Sterling strengthened slightly, with Britain set to hold its first December election in almost a century after Prime Minister Boris Johnson won parliamentary approval for a snap ballot to break the Brexit deadlock.
The EU on Monday agreed to a three-month flexible delay to Britain's departure.
======================================================== Currency bid prices at 11:46AM (1546 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1108 $1.1098 +0.09% -3.15% +1.1114 +1.1074 Dollar/Yen JPY= 108.9300 108.9400 -0.01% -1.21% +109.0600 +108.8400 Euro/Yen EURJPY= 121.00 120.93 +0.06% -4.14% +121.0600 +120.5900 Dollar/Swiss CHF= 0.9944 0.9944 +0.00% +1.32% +0.9964 +0.9934 Sterling/Dollar GBP= 1.2883 1.2862 +0.16% +0.99% +1.2897 +1.2808 Dollar/Canadian CAD= 1.3066 1.3050 +0.12% -4.19% +1.3072 +1.3041 Australian/Doll AUD= 0.6866 0.6838 +0.41% -2.60% +0.6871 +0.6836 arEuro/Swiss EURCHF= 1.1047 1.1037 +0.09% -1.84% +1.1049 +1.1022 Euro/Sterling EURGBP= 0.8621 0.8628 -0.08% -4.04% +0.8650 +0.8609 NZ NZD= 0.6356 0.6347 +0.14% -5.37% +0.6375 +0.6340 Dollar/DollarDollar/Norway NOK= 9.2329 9.2217 +0.12% +6.88% +9.3041 +9.2140 Euro/Norway EURNOK= 10.2560 10.2343 +0.21% +3.53% +10.3121 +10.2140 Dollar/Sweden SEK= 9.7203 9.7021 +0.27% +8.44% +9.7488 +9.7017 Euro/Sweden EURSEK= 10.7991 10.7700 +0.27% +5.21% +10.8045 +10.7706
