The second estimate of the UK GDP data showed that economic growth in the nation was unchanged for the third quarter despite business investments and exports remaining under pressure. Meanwhile, the BoE Governor resorted to a dovish stance yesterday in his testimony before the Treasury Select Committee. He warned that Britain’s interest rate is expected to rise at a slower pace next year amid external challenges and prospects of weak inflation in the UK going forward.Across the Atlantic, traders will eye a raft of economic data scheduled later today ahead of tomorrow’s Thanksgiving Day holiday in the US. Durable goods orders and jobless claims data will attract maximum market attention, especially after yesterday’s mixed economic data in the world’s largest economy.
Today’s macro data in the UK has revealed that the number of mortgage approvals in the UK dropped for October due to tighter mortgage lending norms introduced by the BoE earlier this year. Meanwhile, the main focus among market participants is likely to remain on the BoE Governor’s testimony in parliament later today where he is anticipated to offer more clarity to the bank’s recently downgraded inflation forecasts.Across the Atlantic, the revised GDP numbers for the third quarter are expected to show a downward revision. Meanwhile, the revised GDP data in Germany released earlier today confirmed that Europe’s largest economy dodged a recession for the third quarter.
With a light macro calendar in the UK today, investors’ focus is likely to remain on the revised GDP reading scheduled this week. The revision is expected to confirm that Britain’s economic growth for the third quarter remained close to its pre-recession high. However, any downside surprise in the reading is likely to weigh on expectations of a sooner than expected interest rate rise in the UK.On Friday, the Euro lost significant ground against the majors following dovish comments from the ECB President. However, the German Ifo survey released earlier today showed that domestic business conditions improved for November. Across the Atlantic, the Markit preliminary non-manufacturing PMI report due later today is anticipated to attract market attention for further direction.