FX.co ★ The US dollar returns to the game

Data in the first half of Thursday exerted pressure on the European currency, not allowing it to get beyond its weekly highs against the US dollar.

According to the report of a statistics agency, the level of confidence in the manufacturing sector in France in December of this year declined. Thus, the index of sentiment of companies in the manufacturing sector was at 112 points against the November value of 113 points. Despite this, a high level of confidence supports the economic growth of France.

Restrained demand for the euro is also associated with early parliamentary elections, which took place in Catalonia. It is expected that the majority of seats in parliament can go to parties that advocate integrity, and which are against the independence of Catalonia. Coupled with another result, the pressure on the European currency may rise again.

Weak data on the annual growth of US GDP in the 3rd quarter of this year did not allow the US dollar to further strengthen its positions against the European currency in the afternoon at the beginning of the US session.

According to the report of the US Department of Commerce, the US economy in the third quarter of this year expanded by 3.2% compared with the same period in 2016, which is lower than the previous estimate. According to the previous estimate, the annual growth of US GDP in the third quarter was 3.3%. Economists forecast that GDP will remain unchanged at the level of 3.3%.

The main reason for the decline in the indicator was consumer spending, which dropped further during the reporting period than previously thought. Growth was noted in company investments and exports.

As for the technical picture of the EURUSD pair, an unsuccessful attempt to get beyond the resistance level of 1.1885 led to the expected downward correction in the trading instrument, which will likely be limited to support levels around 1.1830 and 1.1805.

The British pound rose after data on reduced borrowing of the UK public sector. According to the report, in November of this year, the net borrowing of the UK public sector decreased and amounted to 8.7 billion pounds compared to the same period of last year. As noted in the report, borrowing declined due to increased tax revenue.

As for the technical picture of the GBPUSD pair, it is likely that the pressure on the pound will continue and that will lead to a decline in the trading instrument towards the lower border of the channel to the area of 1.3330 and 1.3300, from which it was possible twice to see the return to the market of large buyers of the British pound.