#Daily_market_report Pound Looks to 3Q GDP Revision to Inform BOE Rate Hike Outlook - EUR/USD stuck below 1.2500 - Dollar struggles on mixed US eco data and lower yields A revised set of third-quarter UK GDP figures headlines the economic calendar in European trading hours. Expectations point to confirmation of earlier estimates showing output growth slowed for the first time in nearly two years, with the year-on-year growth rate ticking down to 3 percent from the 3.2 percent recorded in the second quarter. A downward revision may weigh on the British Pound as traders push out BOE rate hike expectations further into the future. Alternatively, an upgrade may fuel bets on sooner tightening and lift the currency. The shared currency is trading almost unchanged vs. the greenback on Wednesday, with EUR/USD hovering over the 1.2470 area. Spot is extending its consolidation pattern between 1.2450 and 1.2500 so far, looking to recover ground lost after Friday’s sharp sell-off post-Draghi’s comments. Nothing of note in the euro area today will leave the attention exclusively to the US docket, with Personal Income/Spending, the Reuters/Michigan index and Durable Goods Orders as the main highlights. The 18-nation euro strengthened after failing to break through the $1.24 level, pushing the shared currency up from almost a two-year low reached as the European Central Bank considers increased monetary stimulus. The euro gained 0.3 percent to $1.2474 per dollar at 5 p.m. in New York, after falling as much as 0.3 percent. The shared currency reached $1.2358 on Nov. 7, the lowest level August 2012. Financial markets in the U.S. are closed on Nov. 27 for Thanksgiving holiday. Yesterday showed several remarkable swings in different markets. Early in the session, the euro hardly profited from a buy Europe trade on almost all markets. Later in the session USD weakness prevailed. The dollar failed to profit from a stronger than expected US Q3 GDP. Poor US midmorning data kept the dollar under pressure. In the US, the calendar is extremely well filled because of Thanksgiving and Black Friday. The durable orders, the weekly jobless claims, personal income and spending (including the deflators), the Chicago PMI and the new Home sales all have the potential to move markets. It is not easy to predict the aggregate reaction of the dollar to this long set of eco data. Have a good day! Infinity International, Ltd
Posted on: Wed, 26 Nov 2014 10:24:25 +0000
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