Daily market commentary: as Friday’s European trading session gets underway the greenback is still carrying a positive momentum

Steffy Bogdanova
January 27, 2023 10:47 am

Forex

The US dollar regained the front foot on Thursday, following the release of better-than-expected US GDP data, and as Friday’s European trading session gets underway the greenback is still carrying the positive momentum. The increase in US economic output during the last quarter of 2022 exceeded expectations, watering down fears of an impending recession in the world’s largest economy. Such a scenario is likely to amplify the voices of those advocating for the continuation of the Federal Reserve’s hawkish monetary policy, offering some support to the dollar.

Daily Market Commentary

However, the upside for the greenback is limited; a more in-depth analysis of the GDP data reveals that the growth was, to a large extent, driven by inventories, and therefore likely to fizzle out later in the year.

Ricardo Evangelista – Senior Analyst, ActivTrades

Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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