This article is originally referred from Traders Trust Daily Afternoon Report
The dollar extended gains against the other major currencies on Tuesday, boosted by the release of upbeat U.S. economic growth data.
Official data showed that the second estimate of third quarter U.S. gross domestic product rose 3.2%, up from the initial reading of a 2.9% expansion. This was the largest quarter-on-quarter growth since the 3.9% expansion in the second quarter of 2015.
Analysts were looking for a smaller upward revision to just 3.0%.
The upbeat data added to optimism over the outlook for the U.S. economy amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation.
The strong report also added to expectations that the Federal Reserve will decide to raise interest rates at its December policy meeting.
EUR/USD slid 0.41% to 1.0571.
Elsewhere, GBP/USD gained 0.39% to trade at 1.2465.
Earlier Tuesday, the Bank of England said net lending to individuals rose by £4.9 billion in October, compared to expectations for an increase of £4.8 billion and after a £4.7 billion gain the previous month.
USD/JPY rallied 1.18% to 113.28, while USD/CHF climbed 0.47% to 1.0170.
Official data earlier showed that Japan’s household spending declined by 1.0% last month, disappointing expectations for a 0.1% rise and after an increase of 2.8% in September.
The Australian dollar remained weaker, with AUD/USD down 0.56% at 0.74383, while NZD/USD held steady at 0.7077.
Meanwhile, USD/CAD gained 0.40% to trade at 1.3464.
Market participants were also looking ahead to Wednesday’s OPEC meeting, amid growing uncertainty over the possibility for a production cut deal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.41% at 101.62, still close to last Thursday’s 14-year peak of 102.12.
Original Source: Traders Trust Daily Afternoon Report