The GfK report released earlier today revealed that consumer confidence in the UK remained subdued for November. Separately, another survey showed that the annual pace of house price growth eased for November. This has brought some relief to BoE officials, especially after the central bank introduced tougher lending measures earlier this year to avoid Britain’s housing market from overheating. Meanwhile, the OPEC members kept crude output unchanged at their meeting yesterday, thereby weighing heavily on crude oil prices and the Canadian Dollar.With a light economic calendar across the Atlantic today, market attention is expected to remain on the preliminary Euro zone consumer price inflation data. Any downside surprise in these numbers is likely to boost prospects of further stimulus measures in the Euro bloc.
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.