The dollar rebounds on strong US growth

The US economy grew faster than expected in the third quarter

By Nadia Elbilassy | @Nadia Elbilassy | 30 November 2023

Copied
close (2)
  • The US dollar rebounded from a three-month low on Wednesday following data indicating faster-than-expected growth in the third quarter, with Prelim GDP reaching 5.2%

  • Chinese manufacturing activity faced a continued decline in November for the sixth consecutive month.

  • Gold prices experienced a slight decline, signaling a temporary pause in their recent rally.

On the Market Watch!

US GDP

The dollar rebounded from more than three-month lows on Wednesday, supported by data revealing a faster than-initially expected growth in the U.S. economy for the third quarter.

The US Prelim GDP grew 5.2% vs 5.0% expected and 4.9% previous. The data sparked optimism in the market, raising hopes that the largest economy can steer clear of a recession.

China’s manufacturing PMI

Chinese manufacturing activity experienced a further decline in November for the 6th month this year. Additionally, China’s non-manufacturing PMI also grew less than expected at 50.2 compared with 50.6 in October.

Concerns about a potential new pandemic have also negatively impacted sentiment in China, following a surge in pneumonia infections across the country. Despite the People's Bank of China implementing additional stimulus measures to support the economy, apprehension persists.

Gold prices

Gold prices experienced a slight decline, signaling a pause in the recent rally of the precious metal. Market participants were eagerly awaiting additional signals on U.S. monetary policy, particularly from a crucial inflation reading scheduled for later in the day.

Despite this temporary dip, the prices of gold remained near a seven-month peak achieved earlier in the week. The strong gains in November were propelled by expectations of a less hawkish Federal Reserve, a weakened dollar, and an uptick in safe-haven demand.

Copied