2018.03.2810:37:00UTC+00Dollar Extends Rally After Upward Revision To U.S. GDP Data

The U.S. dollar extended its early rally against its major opponents in early New York deals on Wednesday, following an upward revision to U.S. GDP data in the fourth quarter of 2017.

Data from the Commerce Department showed that U.S. economic activity grew more than previously estimated in the fourth quarter of 2017.

The report said gross domestic product climbed by 2.9 percent in the fourth quarter, reflecting an upward revision from the previously estimated 2.5 percent increase. Economists had expected the pace of GDP growth to be upwardly revised to 2.7 percent.

With the upward revision, the GDP growth in the fourth quarter reflects only a modest slowdown from the 3.2 percent jump in the third quarter.

The U.S. weekly jobless claims and consumer sentiment are due tomorrow, ahead of upcoming three-day weekend.

The currency has been trading higher in the European session, as worries about tighter regulations for tech industry sent investors rushing to safe-haven assets.

Reversing from an early decline to 105.33 against the yen, the greenback hit a weekly high of 106.34. Continuation of the greenback's uptrend may see it challenging resistance around the 110.00 mark.

The greenback firmed to a weekly high of 0.9540 against the Swiss franc, after having dropped to 0.9460 at 6:00 pm ET. If the greenback rises further, 0.97 is possibly seen as its next resistance level.

Switzerland's KOF Economic Institute upgraded its economic outlook citing improved economic situation of major trading partners and the depreciation of the Swiss franc against the euro.

In the Spring Forecast, the think tank said gross domestic product is forecast to grow 2.5 percent this year instead of 2.3 percent estimated in December.

Following a slide to 1.2422 against the euro at 11:45 pm ET, the greenback climbed to a 2-day high of 1.2350. The greenback is seen finding resistance around the 1.21 region.

Survey data from the market research group GfK showed that German consumer confidence is set to improve in April.

The forward-looking consumer sentiment index rose unexpectedly by 0.1 point to 10.9 in April. The score was forecast to fall to 10.7.

The greenback reversed from an early low of 1.4200 against the pound, rising to 1.4106. Next key resistance for the greenback is seen around the 1.39 level.

The Distribution Trades Survey from the Confederation of British Industry showed that UK retail sales are forecast to rebound in April after declining for the first time since October 2017.

About 32 percent of retailers said that sales volumes were up in the year to March, whilst 40 percent said they were down, giving a balance of -8 percent.

The greenback strengthened to a 5-day high of 1.2927 against the loonie and a 2-day high of 0.7237 against the kiwi, off its early lows of 1.2863 and 0.7275, respectively. On the upside, 1.32 and 0.70 are seen as the next resistance levels for the greenback against the loonie and the kiwi, respectively.

The greenback appreciated to 0.7653 against the aussie, a level unseen since December 2017. This may be compared to a low of 0.7702 hit at 12:00 am ET. The next likely resistance for the greenback is seen around the 0.75 level.