US GDP Growth Reaches Two Year High

In a sign that the US economy is rebounding from the slowest growth in years, third quarter gross domestic product signaled that a recovery was hastening, potentially beckoning further rate hikes from the Federal Reserve if momentum persists.
The final reading of third quarter GDP came in at 3.50%, beating the second estimate of 3.20% as soybean exports and personal consumption expenditures increased at a faster pace than anticipated.
Exports in particular rose by 10.00% during the period in spite of the recent strengthening of the US dollar which traditionally would make US goods more expensive on a relative basis.  The figure was also bolstered by stronger private investment and heightened government spending.  The dollar managed to snap back from earlier losses on the back of the strengthening outlook, pushing gold as low as $1127.64 before rebounding overnight.

After contracting during the second quarter, French economic activity was confirmed at 0.20% growth during the third quarter according to the final reading of GDP from INSEE.  When combined with rising inflation which most recently touched a 25-month high, the outlook is brightening modestly for the economy.
However, despite managing to avoid a recession, the economy faces significant headwinds amid unemployment which surprisingly rose back to 10.00% during the third quarter and recording the biggest trade deficit in over 2-years.

More concerning to makes however is the upcoming election as Europe’s political sentiment turns more hawkish and right wing amid a spate of terrorism incidents across the Euro Area.  In the meantime, the French CAC 40 is pushing back towards the most elevated level since 2015 after reaching multi-month highs earlier in the week.