Investing.com – The dollar rose against a basket of major currencies on Friday, after data showed that strong consumer and business spending underpinned faster-than-expected US economic growth in the third quarter of the year.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.39% to 94.92.
The gross domestic product increased by 3.0% annual rate in the July-September period, the Commerce Department said in a first estimate on Friday. That was above economists’ estimates for growth of 2.5%.
The start of growth comes amid reports suggesting to replace Fed Governor Jerome Powell and the Stanford University economist John Taylor, President of Trump’s favored candidate, the Fed Chairman, Janet Yellen, as their term of office ends in February, Politico reported on Thursday, citing a source.
Trump is expected to announce its candidate before a trip to Asia in early November.
The dollar is set to post its second straight week of gains as analysts continue to talk up the potential of the other head.
“I think the dollar is a great place now, and looks poised for medium term gains. Nevertheless, it is an unusually good week, had to have the currencies gained against all of the other G-10. It could be taking some profit and position closing before the weekend,» said Marshall Gittler, chief strategist at ACLS Global, in a note.
Also the add of dollar strength was a continued slump in the euro following the ECB to trim decision is binding in its monthly purchases of bonds up to €30 billion, and some quiet comments from ECB President Mario Draghi on Thursday.
EUR/USD fell to a more than 3-month low of $1.1586, down 0.57%, while EUR/GBP 0.16% to £0.8839 fell. The single currency is on track to post its biggest weekly loss of the year so far.
GBP/USD lost 0.37% to $1.3112, while USD/JPY traded flat at Y113.97.
USD/CAD rose from 0.20% to C$1.2872 in the midst of the continued weakness of the loonie following the Bank of Canada to keep the decision interest rates unchanged on Wednesday.