Sterling has had a miserable 24 hours as a lack of fundamental data has led investors to get the jitters over Brexit as often happens on quiet days. We have dipped another 25 pips against the dollar this morning, a signal that markets are possibly expecting the worst from this morning’s Prelim UK GDP data for the third quarter. Growth of 0.3% q/q is expected however given Septembers abysmal Retail Sales figure that was released last week we could see it miss target which could put some doubts in the minds of Bank of England’s Monetary Policy Committee members over the appropriateness of raising interest rates next month. The markets are currently expecting around a 80% chance of a hike on the 2nd November.
News reports from around the world indicate that US President, Donald Trump is leaning towards promoting current FOMC member, Jerome Powell to the role of Fed Chair from 2018. A new President traditionally lets the incumbent Fed Chair serve another term however as we all know Trump doesn’t stand on ceremony. This afternoon we have Durable Goods and Core Durable Goods numbers from the States. GBP/USD trades around 1.3120 (midmarket rate).