This week we anticipate inflation data and retail sales for Britain and the US and employment data for Australia. What are the forecasts and how they may affect the currency pairs? Read this week's news wrap!
British budget gap inches down
In September, Britain's authorities faced a smaller budget deficit than anticipated, although the improvement won’t probably help a lot to have minister Philip Hammond financed as he’s working on his annual budget.
As a matter of fact, September’s deficit went down from 4.958 billion pounds to 4.123 billion pounds. That’s what the Office for National Statistics informed. By the way, market experts had generally hoped it would hit 4.5 billion pounds.
Besides this, the figures pointed to a steep downward updated for August's deficit.
For the first six months of this year, Britain’s deficit stuck with 19.9 billion pounds, diving by 35% on the previous year and demonstrating the lowest outcome at this period of the year since 2002.
However, few market experts actually expect Hammond to disclose key moves in spending in his budget on October 29, just five months before the long-awaited Brexit.
Brussels and London have yet to break apart, and the UK’s official budget forecasters have told that Brexit will harm rather than help public funds.
Previously, Prime Minister Theresa May promised to stop the current austerity, although Hammond doesn’t have enough room to maneuver.
Hammond is expected to explain how he’s going to fund May's pledge of higher health spending that by 2023/24 will add up to 20 billion pounds to the National Health Service budget.
Evidently, the ageing of the British population will have public finances pressured in the years ahead before considering Brexit's hit.
Hammond is on the verge of steadily reducing national debt exactly as a share of GDP that he tells is excessively high to back a huge leap in public spending in a future recession.
As a matter of fact, in September, public debt kept to 1.79 trillion pounds, which amounts to up to 84.3% of GDP, down from 86.7% observed in the same month of last year.
Did Bitcoin manage to recover and what was the hottest news in the crypto and blockchain world? Read and find out!
In October, China's factory-gate inflation decelerated for the fourth month due to cooling domestic demand as well as manufacturing activity, thus indicating that the country’s government would probably come up with more growth-boosting measures against…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…