GDP Figures This Morning

The Pound has strengthened this week after encouraging unemployment figures, and this morning at 9.30 we have the latest reading of GDP, the broadest measure of UK economic activity. Expectations are for a quarterly growth of 0.8% and annually 1.5%, and any derivation from these is likely to cause movement for sterling. At the same time, public sector borrowing figures are also released.

Overnight EU leaders have also signed off a new set of rules for dealing with failed banks in the single currency zone, in a move seen as a small step towards banking union across the member states. A €55bn fund, financed over 10 years by the banking industry, is designed to minimise the need for taxpayer funded bailouts the like of which we have seen over recent years most notably in Cyprus, Spain and Ireland. The single currency is likely to take strength from these type of deals which bridge the divides between the northern and southern European states.

In a busy day, American GDP and Canadian inflation are also released this afternoon, as the year’s main data releases draw to a close. The US Dollar has strengthened this week after the Fed unexpectedly slowed down its tapering measures, making the US Dollar more expensive.

At Currency Index we will be closed at midday today, so please contact us this morning for any news on rates. We will be open again on Monday morning.