USD/JPY trades at fresh multi-week highs, closes in on 109.50
- US economy is seen growing more than expected in Q3.
- Broad USD strength lifts USD/JPY higher on Wednesday.
- Both S&P 500 and Nasdaq Composite trade at fresh record highs.
After spending the majority of the day moving sideways near the 109 handle, the USD/JPY pair gained traction during the American trading hours and rose to its highest level in 19 days at 109.40. As of writing, the pair was trading at 109.38, adding 0.32% on a daily basis.
USD outperforms its rivals supported by upbeat data
According to the US Bureau of Economic Analysis' second estimate, the Gross Domestic Product (GDP) in the third quarter expanded by 2.1% in the US to beat the previous estimate and analysts' forecast of 1.9%. Additionally, following a sharp 1.4% decline in September, Durable Goods Orders rebounded in October and increase 0.6% to provide an additional boost to the greenback.
Although the core Personal Consumption Expenditure (PCE) Price Index, the Federal Reserve's preferred gauge of inflation, ticked down to 1.6% on a yearly basis in October, the US Dollar Index preserved its bullish momentum in the second half of the day and advanced to its highest level in two weeks at 98.44. At the moment, the index is up 0.15% on the day at 98.40.
Meanwhile, both the S&P 500 and the Nasdaq Composite renewed their all-time highs on Wednesday to reflect a risk-on atmosphere, which makes it difficult for safe-haven assets such as JPY find demand.
Technical levels to watch for