24 November, AtoZForex.com, Lagos – Adding impetus to the possibility of rate lift off from near zero levels, is the upbeat US GDP data just released at 2.1 percent, slightly above 2.0 percent forecast, as the U.S. economy expanded at a faster pace in the third quarter than previously reported.
Consumer spending continues to drive the US economy as cheap gasoline puts more money in their pockets and greater job security giving them the confidence to spend. However, a deeper look at the data showed corporate profits slumped while workers’ incomes jumped and the inventory adjustment was essentially delayed into the current quarter.
All in all, consumption and consumer spending looks strong enough to continue to absorb labor market slack, which is what Federal Reserve policy makers are focusing on to inform them on the need to commence a gradual tightening of monetary policy.
The sterling has been weak for many days now and still looks bearish technically. It remains a good sell against the greenback, considering that the outlook of the dollar is bullish in the near term.
Intra day opportunities may also be sought to follow the bearish trend on this pair.
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