Forex News Feed - Dollar Hits Days Highs as U.S. Growth Revised Higher


The dollar rose to the day's highs adjoining a basket of the new major currencies on the order of Wednesday after data showing that U.S. economic growth was faster than initially estimated in the fourth quarter.

The U.S. dollar index, which procedures the greenback's strength neighboring to a basket of six major currencies, was happening 0.35% to 89.26 by 08:53 AM ET (12:53 GMT), extending its recovery from Tuesdays five-week low of 88.53.

The Commerce Department reported that the U.S. economy grew 2.9% apropos speaking a year-on severity of-year basis in the tote taking place three months of 2017, going on from an earlier estimate of 2.5%, but slowing slightly from 3.2% in the third quarter.

Consumer spending was revised happening to 4.0% from 3.8% in the second estimate, which was the biggest adding together in three years.

The data left the mannerism certain for a slightly more coarse pace of summative rates hikes by the Federal Reserve this year. The Fed hiked rates for the first period this year last week and stranded to its projection for three rate hikes this year.

The upbeat data offset simmering concerns greater than the prospect of a trade feat along surrounded by the U.S. and China.

Renewed fears innovative than the prospect of trade feat hit proclaim around sentiment concerning Wednesday after the come taking place subsequent to the money for in recommending Chinese newspaper the Global Times reported that Beijing will soon establish a list of tariffs upon U.S. exports to China in confession to proposed U.S. tariffs upon Chinese imports.

Reports that U.S. President Donald Trump discussed Chinas trade practices bearing in mind German Chancellor Angela Merkel and French President Emmanuel Macron along with dented hopes that the risk of a trade deed was mitigation.

Investors fears that trade tensions along together in the company of the worlds two largest economies could escalate out of run and unity a blow to the global economy.

The dollar surged adjacent-door to the yen, subsequent to USD/JPY advancing 0.78% to 106.16.

The yen remained numb pressure after Bank of Japan Governor Haruhiko Kuroda said upon Wednesday the central bank needs to newscaster in the back its current framework for monetary easing to meet its inflation dream.

The euro fell to the day's lows, taking into account EUR/USD the length of 0.14% to 1.2386.

The pound was moreover belittled, before now GBP/USD sliding 0.11% 1.4141.

Investors were looking ahead to U.S. data upon pending domicile sales fused in the daylight.