Yesterday we saw the U.K. Office for National Statistics report that public sector net borrowing fell to £8.63 billion in September from £10.79 billion in August. The figure was revised from a previously estimated £11.31 billion. This is the smallest budget deficit for a September in eight years as the tax take from businesses and individuals rose to records.
China will be investing in the development of a nuclear power station at Hinkley Point as part of new economic ties being established between the two countries. In Mark Carney’s speech yesterday he stated that Britain's financial stability could be threatened by closer eurozone integration unless the UK secures safeguards from Brussels that protect the interests of non-members.
There was no major data released from the U.S yesterday, on Tuesday we saw the U.S. housing sector data released which continued to support the dollar. This helped the dollar move slightly higher against some of the major currencies. The U.S. Commerce Department reported on Tuesday that housing starts rose 6.5% to 1.206 million units last month from August’s total of 1.132 million units. The number of building permits issued dropped by 5.0% to 1.103 million units from August’s total of 1.170 million. Analysts expected building permits to fall by 0.9% to 1.164 million units in July.
GBP: 9:30 – Retail Sales (YoY) (Sep) Expected to rise to 4.8% from 3.7%
EUR: 12:45 – ECB Interest Rate Decision – Previous being 0.05%
EUR: 13:30 – ECB Monetary policy statement and press conference
USD: 14:00 – Housing Price Index (MoM( (Aug) Previous being 0.6%