The main currency pair appears neutral on Thursday. The current EURUSD quote stands at 1.0970.
Since yesterday, the currency market has successfully corrected its excessive overbought conditions.
The US statistics turned out interesting. The GDP for Q3 in the second reading increased by 5.2% q/q, surpassing the forecasted 4.9% rise and the previous 2.1% increase. While a robust report was expected, the market is now pondering the prospects: will inflation accelerate with such strong consumer demand?
The primary forecast from the US Federal Reserve suggests that by the end of 2023, the real US GDP will have grown by approximately 2.1%.
Today, a significant flow of crucial data will persist in the market. Parameters for personal income and spending for October will be released alongside the core consumer consumption expenditure price index for the same month. This Core PCE index is pivotal for the Federal Reserve in deciding its credit and monetary policy. The index is expected to decrease from 3.7% to 3.5% y/y. While a decline in the indicator will be a positive sign for the capital markets, it may be interpreted as local adverse news for the USD.