On Friday morning it seemed that the Euro had stopped its advance against the US Dollar. The reason for the assumption was the fact that a resistance line was clearly spotted. Moreover, a slightly confirmed lower trend line could be marked, changing the short term forecast for the EUR/USD currency exchange rate.
The Greenback depreciated against the European single currency on the disappointing US GDP data. The EUR/USD exchange rate rose 11 base points to the 1.1866 mark to reveal temporary consolidation, but fell, as Congress managed to avoid the US Government shutdown on Friday.
The US economy expanded at its strongest pace in two years in the Q3, fuelled by solid business spending.The Commerce Department stated that the country’s gross domestic product rose at a 3.2% yearly rate in the Q3, missing expectations for a 3.3% growth. Moreover, the US Congress approved tax cuts are set to encourage economic growth, though the risk of overheating is likely to occur with fiscal stimulus coming simultaneously with reaching the level of full employment.
Source: Dukascopy and others