Dollar consolidates above 12-week low ahead of US growth data

The US dollar rose on Wednesday, consolidating above the 12-week low that was hit yesterday, but remains ebbed due to strong market sentiment and weak demand, which comes ahead of key data in the US, led by GDP reading for the third quarter of this year.

The dollar index rose 0.2% to 92.26 points, after opening at 92.11 points, and hitting an intraday low and the lowest since September 1st at 91.94 points.

The index lost more than 0.3% yesterday and resumed its losses after a two-day rally.

The US dollar is weighed down by weak demand and strong risk appetite, as a result of the easing of political tensions in the US over the presidential election results.

The outgoing President Donald Trump gave the green light for the transition of power to the president-elect Joe Biden's team, which is considered as a main step in Trump's official conceding of the election.

John Biden is planning on appointing former Federal Reserve Chair Janet Yellen as Secretary of the US Treasury, which boosts odds for further fiscal and monetary stimulus to support the US economy amid the coronavirus crisis.

At 13:30 GMT, the US GDP  for the third quarter of 2020 is expected to reach a growth rate of 33.1% in line with the initial reading, which is considered the highest growth rate in the US history.

The US unemployment claims for the week ending November 21 are expected to reach 0.732 million from 0.742 million during the previous week.

At 15:00 GMT, the personal spending index for October is expected to rise by 0.4% vs. 1.4% in September, and the personal income index is expected up by 0.0% from 0.9%.