Amid a light day in terms of economic releases, the Pound is trading in a tight range against the greenback this morning. With yesterday’s GDP showing that economic growth in the UK missed market estimates for the last quarter of 2014, Sterling traders will eye this week’s GfK survey to gauge the health of spending among UK consumers for January. In the Euro zone, today’s German GfK survey revealed that morale among consumers for February improved to its highest in thirteen years.Across the Atlantic, the Fed’s policy meeting will attract considerable attention among market participants to gauge the timing of an interest rate rise in the US, especially after yesterday’s soft US durable goods orders data heightened concerns over the economy’s resilience to the current subdued global conditions.
The preliminary UK GDP data this morning showed that economic growth expanded at a slower than expected pace for the last quarter of 2014. Consequently investors’ expectations of an early interest rate rise in the UK have diminished. Separately, another survey showed that the number of mortgage approvals for December continued to ease for a sixth straight month.Across the Atlantic, a slew of crucial economic updates will keep investors on their toes today. December’s durable goods orders report will be eyed to gain an early insight into Friday’s preliminary US GDP data for the fourth quarter. Additionally, the US consumer confidence survey for January will attract considerable attention among investors.
With a thin economic calendar today, Sterling investors are focused on tomorrow’s GDP data from the UK. This report will be eyed to gauge the nation’s economic growth for the last quarter of 2014, especially amid recent signs of a slowdown in the UK economy. The data will also determine expectations about the trajectory of interest rates in the nation going forward.Meanwhile, in the Euro zone, the mostly upbeat German Ifo surveys released earlier today provided support to the Euro, especially after the victory of the leftist Syriza party in Greece caused the common currency to weaken initially against its counterparts. Across the Atlantic, Friday’s soft preliminary Markit manufacturing PMI report cast doubts about the resilience of the US economy to the subdued global conditions.