Nov 30 2007
The Greenback Looks Up Before The Weekend
The Commerce Department yesterday reported that GDP in the US rose to a 4.9% annual rate, up from last month’s figure of 3.9%. As a result, the US dollar rose Thursday against two of its major counterparts, the Euro and the Sterling. The U.S Dollar which has dropped overall by 11% this year, found a way yesterday to rally from $1.4769 per EUR from the $1.4841 it had hit the day before; it’s most significant rise since Nov. 12. The US dollar increased to $2.0628 versus the Sterling, from $2.0823, and against the Japanese yen the greenback fell by 0.4% to 109.60, from 110.03.
GDP deflator’s increased from 0.7% to 0.9%, above the estimate of 0.8%. US PCE index, an inflation gauge, remained at 1.7% in the third quarter as expected. US weekly jobless claims rose 22k to 352k, above the estimate of 332k. In other news from yesterday, US new home sales fell from 770k to 728k in October, below the estimate of 750k. This confirmed the expectation that the nation’s housing sector is slowing. Today we will see several important US economic reports, including personal income and spending, PCE index, Chicago PMI, and construction spending. US personal income is expected to remain at 0.4% in October. Personal spending is expected to be released at 0.3%, a figure unchanged from last month. The day will be capped off with a speech by Federal Reserve Governor Kroszner who will finish up the weeks economic calendar.
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