Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
British account gap dives as fourth-quarter GDP surge’s confirmed
The United Kingdom’s current account deficit turned to be smaller than anticipated in 2017, as its statistics office informed on Thursday. It definitely relieves worries as for Britain’s reliance on foreign investors to finance itself as Brexit is getting closer.
Besides this, the Office for National Statistics confirmed that economic surge in the United Kingdom speeded down moderately at the end of the previous year, although the dominant services sector managed to modestly pick up in the beginning of 2018.
In the fourth quarter the current account deficit stuck at 18.4 billion pounds. It’s much lower than a median estimate of 24 billion pounds in a Reuters survey of market experts and it’s also below all predictions in the survey.
As a result, the full-year deficit was left at 82.9 billion pounds, which is 4.1% of GDP.
Market experts pointed out that Britain’s deficit with the rest of other countries dived because the United Kingdom obtained greater revenues on foreign investment due to an ascending world economy.
Mark Carney, Bank of England Governor has told that the country’s balance of payments shortfall makes it heavily reliant on foreign investors’ kindness.
Britain’s official budget forecasters told that in March they actually expected the gap to dive, and the precious confidence of foreign investors could be endangered if the country’s departure from the EU happened to be chaotic.
The ONS confirmed that on the quarter Britain’s GDP tacked on 0.4%, speeding down from the third quarter’s outcome of 0.5%.
As for the savings ratio for the previous year, it appeared to be the lowest on record showing 4.9% of gross disposable income.
Additionally, Thursday’s data uncovered that the UK’s housing market was still moderate, which reflects the financial squeeze on numerous UK households.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.