The US dollar turned to the upside on Monday. Let's discuss what to expect next from the market.
How will the British GDP growth affect the GBP?
The British monthly GDP growth rate is at 11:30 MT time on December 10.
The British PM Boris Johnson’s expected victory at the coming elections and the nearing Brexit resolution have been solidifying the British pound recently. But how has the British economy been doing? The previous two monthly GDP growth rates were at the negative 0.1% referring to the months of August and September. This time the analysts expect an improvement up to the level of 0.1%. If the October rate outperforms the forecasts on December 10, the British pound will gain strength.
- If the British GDP growth rate outperforms the forecasts, the GBP will rise;
- Otherwise, the GBP will fall.
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.