The Japanese yen was able to gain in early Asia last week in a marginal data day in the region and a focus on U.S. data ahead of the Thanksgiving holiday. USD/JPY traded at 117.90, down 0.06 %,while EUR/USD traded at 1.2473, down 0.01 % and AUD/USD changed hands at 0.8528, down 0.05 %.
The US dollar index, which basically monitors the performance of the greenback against a basket of six other major currencies, was stable at 87.96.
This week the U.S. is scheduled to release a flood of data ahead of last week’s holiday including reports on durable goods orders, personal income/spending, reports on new and outstanding home sales, unemployment claims and revised data sentiment of consumer.
Overnight, the dollar was traded largely lower against most major currencies last week following a disappointing U.S. consumer confidence report which offset upbeat economic growth data sending investors selling the greenback for profits after several weeks of rallying.
The U.S. currency has been experiencing heavy demands in recent sessions as markets prepare for U.S. monetary to tighten while Europe and Japan move in the opposite direction.
The conference board market research group reported that the consumer confidence index fell to 88.7 this month from 94.1 in October where the figure was changed from a previously reported 94.5.
Analysts expected that the index will increase to 95.9 in November and the surprise deterioration sent investors selling the greenback for profits which resulted in wiping out the recent gains from the preparations for the U.S. monetary policy to diverge from Europe and Asia.
The present situation index plummeted from 94.4 to 91.3, while the expectation index sharply fell to 87.0 from 93.8 in October.
According to the commerce department, the U.S. gross domestic product grew at a seasonally adjusted yearly rate of 3.9 % in the third quarter which topped expectations for a reading of 3.3 %.
Preliminary data initially fastened U.S. growth at 3.5 % in the third quarter with the U.S. economy expanding by 4.6 % in the preceding quarter.
The data also showed personal consumption rising to 2.2 % in the third quarter which beat expectations for a 1.9 % gain and up from an opening estimate of 1.8 %.
Consumer spending typically curtails for almost 70 % of the U.S. economic growth with the dollar rallying in the past weeks on expectations for the U.S. monetary policy to grow less accommodating while Asian and European central banks move in the opposite direction.
For the meantime, data in Europe revealed that Germany narrowly escaped a recession in the third quarter, posting economic growth of 0.1 %.
The report came a day following the data that showed that German business sentiment significantly improved this month fastening six-successive months of sharp falls.
The upbeat data which indicated that the downturn of the euro’s biggest economy may finally have been concluded and curved expectations that the European Central Bank may soon embark on quantitative easing measures in order to lend a helping hand to the euro.