Forex- U.S. Dollar Recovers After Positive Economic Data

Forex- U.S. Dollar Recovers After Positive Economic Data

© Reuters.  The dollar continues to edge forward. © Reuters. The dollar continues to edge forward.

Investing.com – The U.S. dollar rallied on Thursday as economic data from the U.S. shown signs of an expanding economy.

U.S. surged more than expected in November while fell unexpectedly, pointing to sustained growth and a strengthening economy. Meanwhile the Federal Reserve increased interest rates on December, as expected.

The dollar was also bolstered by news that the tax bill could be voted on as early as next week. The GOP agreed to a tax-reform bill on Wednesday with a corporate tax rate would be decreased to 21%, higher than the original 20% proposed and would be implemented in 2018. Investors believe the tax cuts would help companies invest more and boost the economy.

The U.S , which measures the greenback against a basket of six major currencies, railled 0.32% to 93.70 as of 11:27 AM ET (16:27 GMT).

The dollar inched forward against the Japanese yen, with rising 0.02% to 112.56.

Meanwhile the euro pulled back from gains against the dollar, after the European Central Bank kept monetary policy on hold and revised up its forecast for growth and inflation, but added that underlying inflation remains subdued.

was trading at 1.1776, down 0.42%.

Sterling pared back losses after the Bank of England left bank rates on hold, just one month after raising the interest rate in more than a decade.

The pound was also held up by comments from the BOE that there had been some progress in Brexit negotiations between the UK and Brussels, reducing the risk of a disorderly exit.

jumped 0.10% to 1.3429.

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