Daily Market Report - 20/10/2015

A measure of construction output and activity in the Euro Zone showed an increase in construction. This suggests a growing economy as it reflects consumer and business optimism. The month on month figure previously stood at 0.4% and came out at -0.2%. Causing the revised year on year figure to come out at -0.6%.

Yesterday saw the release of the NAHB housing market index which presents home sales and expected home buildings, these indicate future trends for housing in the US. A high reading is seen as positive for the USD and low seen as negative. This came out better than expected at 64 when the consensus was 62. This is positive for the USD as it can reflect consumer and business confidence.

China’s economy grew by more than expected in the third quarter of this year easing thoughts that it is slowing at a greater pace than previously thought. China’s statistics bureau said yesterday that the country’s GDP increased 6.9% between July and September from a year ago. The expected figure was 6.8% growth.

Key Announcements
11:00 – GBP : BoE’s Governor Carney speech
13:30 – USD : Housing Starts – expected to increase to 1.150m from 1.126m
13:30 – USD : Building Permits – expected to remain unchanged at 1.17m