The Forex market is being shaped by news that the economy in the United States is growing faster than expected. In fact, the growth of the economy in the United States has been growing at the fastest pace since the third quarter of 2014.
FxStreet.com reports that the economy grew at a rate of 3.3% for the period between July and September. That beat initial and revised expectations of 3.2% and 3% respectively. They also report that the President tweeted that the rate of growth would have been 3.9% had it not been for bad storms during that time period.
Economic growth has been particularly strong due to the fact that investments in business have outpaced expectations as well. In fact, the transportation arena of the economy has been one area in particular that has seen a lot of growth in investments. Spending on equipment has reached a greater than ten percent rate of growth. That far outpaces the 8.4% rate of growth that was expected.
News from the United Kingdom has also played a part in shaping the Forex market in recent days. It turns out that the United Kingdom and the European Union have reached a deal about how much the UK will pay to leave the Union. The number seems fair to both parties, and traders are just pleased to have the certainty of what is about to happen with the whole Brexit deal to begin with. Many were worried that there would not be a deal reached that would be workable for both parties. Now, that fear has been put to rest.
The British Pound has been rallying on the news that the deal has been struck between the UK and EU. It has rallied against all currencies on the release of this news. Long holders of the Pound must be happy with the results they have seen so far.
Every day more news comes out that moves the market one way or the other. While these two bits of news are playing their own role in the market, there are certainly more stories that come out over the wires every day that toss and turn the market every which way. Given this, it is important to stay tuned in to see what new stories may have an impact on the market as a whole. Keep the macro pieces of news in mind, but don’t forget the micro details as well.