The dollar has risen sharply against the euro today in anticipation that data tomorrow will show the US grew faster than expected in the third quarter. Revised GDP numbers for the three months to September will probably show that the US economy grew at a 7.6pc annualised basis, up from an earlier estimate of 7.2pc.
At 1620, the euro was down over one cent against the dollar at USD1.1768, having earlier recovered to just over USD1.18. "It seems that the US Commerce Department underestimated inventory stock when calculating Q3 GDP, so that's why the revision will be stronger," said Niall Dunne, economist at Ulster Bank. However, he added that this means that the much-vaunted rebuilding of inventories in the fourth quarter will not be as strong as initial thought, and Q4 GDP will be weaker as a result. The eurozone expanded by 0.4pc in the third quarter, EU statistics showed earlier this month. //www.fxcentre.com