On the whole the pound didn’t have a strong day on Friday, falling against most of its trading partners.
Main focus for the UK was GDP figures. These came in very strong when compared with last year. Third quarter figures last year showed a 1.3% growth, whereas this year growth came in at 1.9%, far above the expected 1.5% growth.
Pretty quiet in Eurozone on Friday. There was a consumer confidence report out in the afternoon which showed an improvement from the previous month of -15.4 to -13.6. After the release of this report the EUR strengthened.
Inflation figures out from Canada revealed a decrease from 1.2% to 1.1%, which would put pressure on the Bank of Canada to keep interest rates as they are.
GDP figures also out in the USA, revealing strong growth. Annualised Q3 figures came in at 4.1%, far above the forecast of 3.6% and improving significantly from last year figure of 2.5% growth. The US dollar strengthened initially after the release of the data, however shortly after, the US dollar weakened by around 70 pips.
The good GDP figures will be welcome news for the Federal Reserve a day after making their decision to taper quantitative easing.
13.30pm – CAD – GDP (Oct): Expected to fall to 0.2%.
13.30pm – USD – Personal Spending (Nov): Expected to increase to 0.5%.
13.30pm – USD – Core Personal Consumption Expenditure (Nov): Expected to increase to 1.2%.