Daily Market Report - 26/11/2014

Yesterday Bank of England Governor Mark Carney addressed Parliament’s Treasury Committee with his quarterly Inflation Report - Mark Carney spoke of “heightened” external risks menacing the U.K. as weakening global economies and political tensions weigh on the outlook highlighting both Japan and Europe as key areas of worry, when this happened the pound declined about 0.3% against the USD and Euro. 

He also told the Treasury select committee that Britain was still an economy that requires monetary stimulus, although he did dismiss the nothing that stronger stimulus would be added in the near future. Stating that the banks next move in policy is going to be a rate increase. 
Fellow monetary policy committee member Kristin Forbes also expressed her belief that inflation would continue to undershoot the banks 2% target, however felt that it was unlikely the UK would slip into deflation. 

As the US market opened a report showed that the U.S. economy expanded more than previously estimated in the third quarter, reflecting bigger gains in consumer spending and business investment and capping the strongest six months of growth in a decade. Also gross domestic product, the value of all goods and services produced, rose at a 3.9 percent annualized rate, up from an initial estimate of 3.5 percent. 

During mid-day trading the US Consumer Confidence report was released, which had rebounded in October, declined in November to 88.7 down from 94.1 in October. USD lost 0.5% against GBP and 0.7% against Euro from when the US market opened.Today

The big news today is the UK's GDP that is expected to remain unchanged at 0.7% so should not cause any volatility in the pound. With the UK facing headwinds in Europe and if the figure is lower than expected we could see the Pound weaken. In The US durable goods orders and initial Jobless claims  are expected to improve in the afternoon so could see the US dollar gain some strenth.

Key Announcements:

09:30 - GBP : UK GDP (Q3) YoY  expected to remain unchanged at 3%
13:30 - USD : US Durable goods orders (Oct) Expected to be higher at -0.6% from -1.1% 
13:30 - USD : Initial Jobless claims expected to be slightly lower at 288K from 291K

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