Craig Erlam, Senior Market Analyst at OANDA, said that the US growth report is “a decent result under the circumstances, as the economy continues to outpace many of its peers.” Today also saw US durable goods orders rebound in October at 0.6 percent, further buoying confidence in the “greenback” as the US economy continues to improve.
However, hopes over a US-China “phase one” trade deal held back the safe-haven US dollar against the pound today, with investors seeking out riskier assets instead.
This follows US President Donald Trump’s comments that a deal between the two superpowers was now in its “final throes”.
Jinny Yan, Chief China Economist at ICBC Standard Bank, commented: “The key priority for [Chinese President] Xi Jinping and policymakers across China is stability, so anything that overthrows stability is going to be essentially a concern.”
The pound also steadied today as markets brace for tonight’s eagerly-anticipated YouGov MRP poll, one of the key indicators for the outcome for the December 12 general election.
A Conservative lead is generally favoured by investors, due to expectations that they will resolve Brexit uncertainty by the end of January, so a sinking position in the polls would prove pound-negative.
Following a surge of last-minute registrations to vote last night, younger voters may provide a boost for the Labour Party ahead of next month’s general election.