Yesterday, a downside surprise in UK’s final GDP data for the third quarter along with a downward revision to Britain’s economic growth for the past few quarters stoked concerns among Sterling investors over the possibilities of a delay in the timing of an interest rate rise in the nation. However, in the absence of any notable economic releases today and the prevalent holiday mood in markets, major currency pairs are unlikely to witness any significant volatility in the week ahead.Across the Atlantic, yesterday’s stronger than expected upward revision to the US GDP numbers for the third quarter supported the greenback against the majors. Going forward today, the weekly jobless claims report will attract market attention to gain an insight into the labour market.
The just released revised GDP data in the UK revealed that annual economic growth missed the previous estimate for the third quarter. The report further indicated that growth in domestic business investments weakened during the quarter, raising concerns of a slowdown in Britain’s economy if government spending falls going forward. Separately, the BBA survey indicated that the number of mortgage approvals in the UK dropped for November.For the latter half of today’s trading session, a heavy economic calendar across the Atlantic is anticipated to attract considerable attention among market participants. The final GDP reading for the third quarter along with durable goods orders and revised Reuters/Michigan consumer confidence data will be eyed for further direction.
With the Christmas holiday period fast approaching and a light global macro calendar today, investors in currency markets are likely to remain on the sidelines. Going forward, market participants will eye the final GDP reading in the UK scheduled tomorrow to confirm if the nation’s economic growth remained strong for the third quarter.In the Euro zone, data scheduled later today is anticipated to show an improvement in morale among consumers in the region. Considering the recent upbeat trend in German and Euro zone economic data, any improvement in the region’s confidence is likely to further ease worries among investors. Across the Atlantic, tomorrow’s revised GDP data is expected to show an upward revision for the third quarter.