It seems better-then-expected data from the U.S. encourage investors on Wednesday to buy the dollar. Consequently, the Greenback ended yesterday's trading in the green against most of its counterparts.
EUR/USD closed the day 38 pips below its opening price at 1.253. Meanwhile, USD/JPY finished with a 17-pip win at 78.69.
The preliminary U.S. GDP report is similar to what is expected. It showed that the economy actually grew by 1.7% in Q2 2012 and not just by 1.5% like previously reported. Meanwhile, data on pending home sales topped expectations when it came in at 2.4% versus the 1.1% forecast.
About the Beige Book... The report did not give any affect whatsoever on the U.S. economy. While some Fed districts reported improvements in employment and consumer spending, there were those who said that the sluggish growth of the manufacturing sector is weighing down economic conditions.
Lastly, be prepared for economic news that will affect the dollar today.. At 12:30 pm GMT, the jobless claims report will be on tap and be expected at 370,000. Also the core PCE index is anticipated to come in at 0.1%.
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