With a light economic calendar in the UK today, Sterling investors are likely to keep an eye on tomorrow’s GfK consumer confidence report in Britain which is anticipated to show an improvement for November. Across the Atlantic, yesterday’s downbeat economic reports weighed on the greenback against the majors. Data showed that core durable orders dropped unexpectedly for October amid reluctance among firms to make new investments.With US markets closed today on account of the Thanksgiving Day holiday, market focus is expected to remain on German preliminary consumer price inflation and GfK consumer confidence data due later today. Both releases will be crucial in helping market participants to gauge the macro health of Europe’s largest economy for the last quarter of 2014.
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.