The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
British pound inches up as UK surge is revised up
On Friday, the British pound soared reacting to the publication of better-than-anticipated surge figures for the first quarter, which undoubtedly spurs chances of a rate lift in August.
The currency pair GBP/USD managed to tack on by 0.50% being worth 1.3143.
On Thursday, in the face of household debt as well as Brexit worries, the UK currency slipped to 1.3055, which happens to be its weakest value since November 2017.
On Friday, the British Office for National Statistics published its final reading of UK gross domestic product for the first quarter of 2018 demonstrating 0.2%% surge quarter-over-quarter. Market experts had hoped for sluggish surge of 0.1%.
As a matter of fact, the UK GDP surged by up to 1.2% in the first quarter year-over-year. The given outcome is generally in line with hopes of market participants. Year-over-year previous quarter surge was updated upwards to 1.3% from 1.2%.
The Bank of England foresees surge for the second quarter of about 0.4%. By the way, Q2 GDP will be issued by the ONS on August 10.
At £17.7 billion, today’s account deficit surpassed forecasts, demonstrating the lowest value for a year.
The revision in Q1 surge happened to be in line with remarks from the BoE that first quarter data often undergoes revision. The upward update spurs the probability that Britain’s key financial institution is going to have its rates lifted at its August gathering to 60% from 50%.
The British pound was also underpinned by more upbeat comments from the EU leaders, attending the summit in Brussels.
The UK currency tacked on versus other key currencies, adding up to 0.55% hitting 27 versus the Japanese yen.
Market participants are going to monitor the EU Leaders Summit for further details on Brexit.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.