Surprise: Dollar rises against the euro as US growth is revised upwards for the fourth quarter of 2015
The dollar rose this afternoon after US growth was unexpectedly revised upwards for the fourth quarter of last year – despite worries about global growth.
GDP growth hit one per cent in the final three months of the year, figures from the US Commerce Department showed today, up from the 0.7 per cent initial estimate. That pushed the dollar up 0.34 per cent against the euro, to €0.9107.
To be fair, it's a slowdown from two per cent growth during the third quarter – but should provide a bit of cheer for economists, who have been pessimistic about prospects for world growth in recent weeks.
Analysts suggested the figures should have a positive effect on the US open. “A dreary Dow Jones is likely to be perked up by today’s better figures," said Dennis de Jong, managing director at UFX.
“Financial markets were expecting a slowdown in the world’s largest economy, so much so that conversations about a recession weren’t far away.
“Yet, with unemployment remaining low and wages increasing at their fastest rate since 2009, growth is back on the agenda. Add to that cheap fuel prices and low mortgage rates, and it may only be a matter of time until disposable incomes are fully realised and growth continues to speed up.”