USD strength continues as Q3 GDP beats expectations at 4.4%

The US dollar gained across major pairs following the release of stronger-than-expected Q3 GDP data, which showed the economy expanding at 4.4% versus the 4.3% forecast. Consumer spending surged to 3.5% from the previous 2.5%, demonstrating robust domestic demand. Corporate profits after tax climbed 4.7%, further supporting the growth narrative. The GDP deflator came in at 3.8%, while core PCE remained at 2.9%, suggesting persistent inflationary pressures. This data reinforces the Federal Reserve's hawkish stance and reduces expectations for near-term rate cuts. EUR/USD tested support at 1.0420, while USD/JPY approached the 157.50 resistance level. The strong economic performance contrasts with weaker growth in other major economies, supporting continued dollar strength. Traders should watch for potential pullbacks as technical indicators suggest overbought conditions in several USD pairs.