31/10/16 - US expands at fastest pace in 2 years

USD

The U.S. economy saw it’s biggest gain in two years in the third quarter, as an increase in exports and a rebound in inventory investment offset a slowdown in consumer spending.

GDP increased at a 2.9 percent annualised rate, following a 1.4 percent gain in the previous quarter, the Commerce Department said on Friday in its first estimate. That was the strongest rate of growth since the third quarter of 2014, and beat expectations for a 2.5 percent rate of expansion.

This figure is in line with the views of Federal Reserve policy makers, who believe that the economy is making slow and steady progress and that the fundamentals are strong. Although these views support the case for an interest rate hike, the Federal Reserve is highly unlikely to make any move at its meeting this week, as there are a matter of days ahead before the U.S. presidential election.
 

GBP

Northern Ireland’s High Court has rejected a landmark legal challenge to Theresa May’s power to push ahead with Brexit.

A judge ruled there is nothing in the 1998 Good Friday peace agreement, that can prevent the government from triggering Article 50, which is the formal legal process for leaving the EU. As this news broke on Friday morning, Sterling hit an eight-day low against the Euro.

Those behind the case argued that the Prime Minister does not have the right to trigger Article 50 of the Lisbon Treaty, thus launching Brexit talks and a two-year countdown to Britain leaving the EU.

After several days of hearings, the court in Belfast threw out the case brought by a cross-community group of politicians and human rights campaigners.
 

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