UK GDP not the key for BOE

27 October, 2015

Today’s sees the first reading of Q3 GDP data in the UK and it is expected to dip to 0.6% from 0.7% in Q2. Recent manufacturing surveys have indicated that the sector is slowing and despite manufacturing making up only 10% of the UK economy, the pace of deceleration is starting to become a concern. The services sector, making up the vast proportion of the UK economy, has also seen survey data rapidly declining in the past three months and at the same time consumer confidence has dipped recently, a critical ingredient to the success of services. Today’s expected dip in growth will come as little surprise especially since the Eurozone recovery is struggling to gain traction, meaning UK the manufacturing and services sectors will continue to find the going tough. But a major concern for the BOE is the reemergence of a deflationary environment. With the exception of September’s 0.2% rise in month-on-month inflation the UK would officially be in a deflationary environment following negative readings in August and October. Sterling could come under pressure this morning especially if the GDP number is lower than expected. Later today there’s a raft of US data with durable goods, then the Markit services survey and finally consumer confidence expected to dip slightly and this release can often move the dollar.


Source link  
CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...


No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...


US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...

USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

  


Share: