US third-quarter 2021 GDP data, Weekly Jobless Claims, UoM Consumer Sentiment, and PCE price index were positive tonight. The dollar also strengthened the gains.
Ahead of the release of the FOMC minutes early this morning, the US publishes a spate of economic data which are mostly positive.
This further reassures the market that the US economy has accelerated, so they anticipate the acceleration of the Fed's tight monetary policy.
US GDP Preliminary Q3/2021 data rose 2.1% year-on-year, slightly higher than the Advanced estimate of 2.0%.
The weekly Jobless Claims data saw only 199,000 people apply for unemployment benefits, down from last week and less than the 259,000 expected.
Meanwhile, UoM Consumer Sentiment was released better than expected and revised up to 67.4.
The data that is also in the main focus because it is related to the Fed's monetary policy is the PCE price index.
One of the key parameters for measuring consumer inflation, it jumped to 0.6% in October, higher than the 0.4% expectation.
Meanwhile, the Core PCE Index rose from 0.2% to 0.4%.
US inflation data is currently the main focus of the market to take into account the Fed's next monetary tightening steps.
In line with the PCE index, the latest Consumer Price Index (CPI) data shows that US inflation is at a 31-year high of 6.2%.
In general, the release of US economic data tonight shows that the US economy bounced after the COVID-19 Delta rampage at the end of the third quarter.
Markets are optimistic that the US will end the last quarter of 2021 on a high.
US Economic Data Convincing, Dollar Rises Ahead of FOMC Minutes
In the trading session Wednesday (24/November) tonight.
The US Dollar Index rose 0.41% to 96.88, its highest level since July 2020.
Previously, the US Dollar found support from the reappointment of Jerome Powell as Fed Chair.
Market focus will then be on the minutes of the FOMC meeting to be released on Thursday at 02:00 GMT+7.
Investors will look for clues about accelerating the tapering of the stimulus to anticipate the possibility of an earlier Fed Rate Hike.
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