The US dollar advanced after the report showed that the US GDP and manufacturing expanded and on concerns for the European debt crisis and the Korean conflict.
The preliminary report on the US gross domestic product showed that the US economy grew 2.5 percent in the third quarter of this year. The analysts expected the growth by 2.3 percent. The Manufacturing Activity Index of the Federal Reserve Bank of Richmond rose to 9 in November from October’s reading of 5. The expected value was 6.
North Korea yesterday fired the artillery shells on the South Korean island, killing two men. As a result the MSCI Asia Pacific Index dropped 0.9 percent and the demand for the US dollar as the safe haven increased. The attractiveness of the dollar increased also on the speculation that the debt crisis would spread across the Europe.
EUR/USD traded near 1.3396 as of 1:13 GMT after it on slumped the yesterday’s session from the opening level of 1.3626 to 1.3367. GBP/USD traded at about 1.5812, following the yesterday’s decline from 1.5954 to 1.5774.
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