The just released revised GDP data in the UK revealed that annual economic growth missed the previous estimate for the third quarter. The report further indicated that growth in domestic business investments weakened during the quarter, raising concerns of a slowdown in Britain’s economy if government spending falls going forward. Separately, the BBA survey indicated that the number of mortgage approvals in the UK dropped for November.

For the latter half of today’s trading session, a heavy economic calendar across the Atlantic is anticipated to attract considerable attention among market participants. The final GDP reading for the third quarter along with durable goods orders and revised Reuters/Michigan consumer confidence data will be eyed for further direction.

Pound Sterling – UK Markets

Data just out has shown that UK’s annual GDP numbers were downwardly revised for the third quarter which has raised concerns about the nation’s economic health going forward, particularly considering the headwinds felt by the Euro zone’s fragile economy. The report further revealed that growth in Britain’s total business investments slowed more than expected for the third quarter. Additionally, considering that high government spending has played a major role in keeping Britain’s economic growth supported of late, weak expenditure levels across domestic firms along with the British Chancellor’s expenditure reduction targets might weigh on the nation’s economic growth going forward. Separately, the BBA report revealed that the number of mortgage approvals in the UK declined for a fifth straight month for November, partly due to the BoE’s measures introduced earlier this year. As a result, the Pound has come under some pressure against its key peers this morning.

Amid a light domestic macro calendar yesterday, the Pound lost ground against the greenback and briefly dropped below the 1.56 mark.

US Dollar – US Markets

The greenback is trading in a tight range against the Euro this morning ahead of the final GDP numbers scheduled in the US later today. These numbers are anticipated to show an upward revision to the nation’s economic growth for the third quarter and strengthen hopes that the world’s largest economy is getting back on its feet before the US Fed considers an interest rate rise next year. Additionally, a slew of other macro data in the US will hog limelight in the latter half of today’s trading session. The durable goods orders report in the US is anticipated to show a stronger growth for November, although investors will eye the core measure in this report which is expected to show a rebound and suggest that domestic business investments remained solid last month. Separately, the revised Reuters/Michigan consumer confidence print for December will be eyed today to gain an insight into the nation’s domestic spending levels.

The US Dollar gained ground against its key peers in yesterday’s trading session despite data released in the US showing that existing home sales in the US dropped more than expected for November.

Euro – European Markets

In yesterday’s trading session, the common currency showed little reaction to the release of the European Commission’s upbeat preliminary survey in the Euro zone which showed a more than expected improvement in morale among consumers for December. Amid an encouraging trend in the Euro bloc’s recent economic updates, investors will eye for more macroeconomic evidence to verify if the region’s macro troubles have bottomed out, especially after an ECB official recently indicated that inflation in the common currency bloc is anticipated to fall in negative territory in the near term.

Data released earlier today revealed that France’s revised GDP figures remained in line with the preliminary estimate, thereby confirming that growth in Europe’s second largest economy remained in the green for the third quarter. However, the Euro has continued to trade in a tight range against the US Dollar this morning. Later today, investors will keenly eye the outcome of the second round of the parliamentary Presidential election in Greece to gauge prospects of a snap general election in the nation next year.

Other Currencies – Highlights

The Kiwi Dollar traded on a weaker footing against the US Dollar in yesterday’s trading session despite data showing that existing home sales in the US dropped more than anticipated for November. However, losses in the Kiwi Dollar were capped later in the session after data released in New Zealand revealed that trade deficit narrowed more than expected for November. A lower import bill led by a decline in oil prices and an increase in meat exports from the nation were some of the key factors in keeping the nation’s trade numbers buoyed last month. Additionally, the New Zealand Dollar gained further support after the IMF indicated that global economic growth is likely to be firmer for 2014 amid the recent decline in global crude oil prices.

With little on the domestic macroeconomic front, crucial economic updates in the US are likely to result in some volatility in the Kiwi Dollar-US Dollar pair in the latter half of today’s trading session.