Nationwide has reported that house prices in the UK continued to grow for October, albeit at a slower pace, compared with same period previous year. However, the Pound has continued to trade under pressure against the majors, largely hurt by yesterday’s US Fed monetary policy decision. Additionally, the recent dovish comments from BoE officials has strengthened prospects of a delay in the timing of an interest rate rise in the nation.Across the Atlantic, the flash estimate of the third quarter GDP reading due later today will be an important event. In Germany, today’s preliminary reading of consumer price inflation is expected to show an acceleration, thereby easing concerns over a deflationary threat in the Euro zone.
Today’s domestic macro data has revealed that mortgage approvals fell for a fourth consecutive month during September along with a drop in the nation’s consumer credit demand. However, the Pound has shown little reaction this morning and is trading above the 1.61 mark against the US Dollar, partly supported by yesterday’s weak US durable goods orders data. However, it remains to be seen if Britain maintains the growth momentum during the fourth quarter amid signs of some fatigue in consumer-led growth.With the US Fed poised to end its bond buying programme this month, the post-meeting policy statement later today will be keenly eyed to gauge if the central bank offers any hints over the timing of an interest rate rise in the nation.
With a light economic calendar in the UK today, Sterling is anticipated to take direction from global cues. However, with the minutes of the latest BoE policy meeting being slightly dovish and amid rising prospects of a delay in the timing of an interest rate rise in the UK, overall market sentiment towards the Pound is expected to remain subdued.Across the Atlantic, market participants will look for hints on the future course of monetary policy in the US as the Fed begins its two-day policy meeting later today. Besides, US durable goods orders and consumer confidence data due later today will attract market attention, especially considering yesterday’s weak Markit services PMI data.