FOREX
The US dollar regained the front foot on Thursday, following the release of better-than-expected US GDP data, and as Friday’s European trading session gets underway the greenback is still carrying the positive momentum. The increase in US economic output during the last quarter of 2022 exceeded expectations, watering down fears of an impending recession in the world’s largest economy. Such a scenario is likely to amplify the voices of those advocating for the continuation of the Federal Reserve’s hawkish monetary policy, offering some support to the dollar. However, the upside for the greenback is limited; a more in-depth analysis of the GDP data reveals that the growth was, to a large extent, driven by inventories, and therefore likely to fizzle out later in the year.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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