Forex Today: NZD cheers stronger Q3 GDP, US data dump in focus

Pre-holiday season thin trading persisted during the Asian session, with a fresh bout of profit-taking seen in the greenback against its main peers, sending EUR and GBP higher. While the yen suffered on the back of the Japanese government approval of the record budget spending for FY 2017/18. The NZD emerged the best performer amid reports of a stronger-than expected NZ Q3 growth figures.

With limited data on the cards in Europe, all eyes remain focused on the US data dump, with the GDP, durable goods, personal spending and jobless claims to hog the limelight in the NA session. Also, the Canadian retail sales and CPI data will be also closely eyed for fresh take on the Loonie.

Main topics in Asia

NZ: Q3 GDP rose by 1.1%/qtr - TDS

New Zealand’s Q3 GDP rose by 1.1%/qtr, beating the market’s +0.8%/qtr f/c (and closer to TD f/c of +1.0%) notes research team at TDS.

Stats NZ’s Dunnett on Q3 GDP: ‘This quarter's rise points to broad-based growth’

Statistics New Zealand national accounts senior manager Gary Dunnett was on the wires earlier today, posting remarks on the NZ Q3 GDP report, which bettered expectations.

UK economic confidence has collapsed – Gfk

Gfk analyst Joe Staton says, “confidence in the general economic situation for the UK has collapsed in the face of uncertainty about the future both at home and abroad”.

Japan plans record $830 billion spending in FY2017/18 – Reuters

Reuters report says Japan's cabinet has approved on Thursday a record $830 billion spending budget for fiscal 2017 that counts on low interest rates and a weak yen to limit borrowing.

German finance ministry: A light acceleration in overall economic activity seen in Q4

The German finance ministry published its monthly report, and provided optimistic insights on the German economy for the final quarter of this year, Reuters reports.

Key focus for the day ahead

EUR/USD side-lined below 1.0450 ahead of US data dump

The US docket remains data-heavy, with the US GDP, durable goods, personal spending and jobless claims data lined up for release in the NA session.

Markets have switched off for the holiday period - ANZ

Analysts at ANZ noted a quiet old night, a sign that people have already switched off for the holiday period. 

Top Trade Recommendations for 2017: Long USD vs GBP and EUR – Goldman Sachs

Research Team at Goldman Sachs suggests to go long US$ equally weighted against EUR and GBP, with a basket indexed to 100, a target of 110 and a stop at 95 as one of their top trade recommendations for 2017.