Commenting on US Q3 GDP growth beating expectations, Chris Towner, Director at JCRA, said: “The Q3 GDP in the US, despite showing slowing growth, did beat expectations with a 1.9% annualised reading compared to forecasts of 1.6%.
“In Q2 we saw 2% growth and the culprits that helped this slowing were consumer spending and businesses trimming their investments. The recent rate cuts with one more expected today should help to invigorate the economy. Even better, if Trump and Xi can manage to sign a trade deal next month in Chile, Trump could get his Christmas wish delivered in 2020. That wish would be for economic growth to strengthen throughout 2020, which will allow him to run for another term with an all-important economic tailwind behind him.
“The US dollar did strengthen marginally across the board due to relief that the US economy didn’t slow as much as forecasted.”