Today investors will be able to estimate the economic growth of major countries: USA and UK. GDP data of both countries for the third quarter are going to be published. The indicator measures the value of all the finished goods and services produced within a country's borders as well as investments and export.
UK GDP is probably going to increase up to 0.8% in third quarter and reach the level of 1.5% in 2013. Positive stats are no surprise for the investors because preliminary numbers were the same. Fundamental data are also quite optimistic. October’s unemployment rate has dropped down to 7.4%, the lowest rate since 2009. However, today’s report of Bank of England reveals that national economy is not fully recovered and GDP growth is determined by weakness of UK trading partners. The report shuts out of the hope of changes in monetary policy.
According to the forecasts, Gross Domestic Product in USA will grow up to the level of 3.6% in third quarter, the highest rate since 2010. The growth of US economy has been confirmed by the QE3 program reduction. However, the increase of GDP indicator has been determined not by the demand of consumers but by the increase of goods in storage, which can badly affect production volumes.
Regarding fundamental data we expect the pair GBP/USD to ascend to the level of 1.6385, but then drop down to the levels of 1.6300, 1.6265 and even 1.6230.
Analyst of LiteForex Groups of CompaniesPublication source