Markets await US Q3 GDP figures today
Daily Currency Update
The Euro traded lower yesterday after weak PMI data and as analysts see slowing global growth as weighing on the Eurozone. The single currency continues to trade just above trendline support vs the Dollar at 1.0521 and a break of this level should lead to further downside.Sterling remains under pressure as inflation remains high and the economy continues to contract. The currency fell vs the Dollar and the Euro and it seems markets expect further downside for Sterling.
In the US The Dollar remains firm vs all major currencies. The market has been trading sideways with any short-term sell-off in Dollars meeting strong buying interest.
Key Movers
In Europe economic data is light through the rest of this week and the currency looks set to remain range-bound until the ECB’s Interest Rate announcement. The Euro’s fall since Summer has stalled but any bounce has been muted which technically would point toward further losses for the Euro.In the UK the economic surprise index has fallen steadily since August and cooling labour conditions and price pressures are leading analysts to expect no change to interest rates.
US economic data is due today with US Q3 GDP expected later today and is widely expected to rise from 2.1% to 4.3%. In addition, markets will also watch PCE data which is expected to show inflation falling closer to the Fed’s 2% target. A lot of this data is “priced in” and if there is any disappointment it could lead to a short-term sell-off in the Dollar.
Expected Ranges
- GBP/USD: 1.2025 - 1.2125 ▼
- GBP/EUR: 1.1420 - 1.1520 ▲
- GBP/AUD: 1.9150 - 1.9250 ▲
- EUR/USD: 1.0500 - 1.0600 ▼