Dovish comments by the Bank of England (BoE) Governor Mark Carney yesterday that interest rates are likely to remain low for an extended period weighed on the Pound. Today, UK Chancellor’s Autumn Statement will be in the spotlight, wherein the British Finance Minister will unveil budgets for government departments for the next five years and could also revise the nation’s medium term inflation and growth forecasts. Data wise, the just out BBA figures showed that the number of UK mortgage approvals rose less than expected in October.Another focus for investors will be a deluge of US economic data later in the day, including the latest durable goods orders numbers, core personal consumption expenditure index and personal spending data ahead of the Thanksgiving holiday tomorrow.
Today, all eyes will be on the Bank of England (BoE) Governor Mark Carney’s testimony about the latest quarterly inflation report in front of the Treasury Select Committee. The report which was delivered earlier this month had surprised markets by its dovish nature. Today’s tone of the BoE Chief will be crucial to Sterling investors who have been caught between the diverging Fed and ECB monetary policy outlook.Earlier today, the Euro received fresh impetus against its key peers from stronger than expected German Ifo surveys and in line German Q3 final GDP data. Across the Atlantic, the Federal Reserve (Fed) Chairwoman Janet Yellen yesterday responding to a letter received from savers called for a gradual increase in interest rates. On the data front, the revised third quarter growth figures slated later in the day will be on the radar.
In Europe, the week has commenced with the first available information on economic trends in November after data released earlier in the day boosted optimism about the health of the Euro area’s economy. Business activity in the Euro zone expanded at the fastest pace since mid-2011 in November helped by the service sector, indicating a pickup in growth in the final quarter. However, the French services sector displayed weakness due to the recent Paris attacks. Moving ahead, investors will eye the release of US manufacturing PMI and existing home sales report due later in the day. Meanwhile, it is a light economic calendar day in the UK today.Going forward, spotlight will shift towards third quarter GDP data in the UK and the US scheduled this week.