Positive economic data bolsters the US Dollar

Daily Currency Update

The US sees the release of several important economic data today.

The US Bureau of Economic Analysis' (BEA) revealed that GDP in the US increased by 2.9% on an annualized basis in Q4. The reading exceeded the market expectation of 2.6% and followed the 3.2% recorded in the previous quarter.

The US Department of Labor (DOL) released data on Thursday showing that there were 186,000 initial jobless claims in the week ending January 21. This was an improvement from the previous week's 192,000 and beat market predictions of 205,000.

The US Census Bureau announced on Thursday that durable goods orders in the United States rose 5.6%, or $15.3 billion, to a total of $286.9 billion in December. This reading followed November's 1.7% contraction and beat market expectations for a 2.5% increase.

The dollar index is showing strength supported by the release of positive economic data as it trades above the 101.830 mark. Investors anticipate that the Federal Reserve will pursue less aggressive policy tightening measures. Despite recent evidence suggesting the economy remains resilient, concerns of a US recession looming on the horizon persist.