Daily Market Report - 29/01/2016

GBP

The Pound gained across the board yesterday after the GDP figure showed the UK economy grew by 0.5% in the three months to the end of December, taking the annual rate of growth for 2015 to 2.2%. The final quarters growth for 2015 bettered the previous GDP figure of 0.4%, showing the economy is still performing despite global macroeconomic conditions.
 
The annual pace of growth was actually the slowest for three years but it still means the UK economy is one of the fastest growing developed nations. The slowdown, caused by weaker construction and production output, has prompted concerns over the UK’s over reliance on the services sector which grew by 0.7%. 

USD

In the US core durable goods MoM and unemployment claims came out weaker than forecast at -1.2% and 278k against forecast of -0.1% and 281k respectively. Naturally off the back of these negative figures the USD deteriorated against most of its pairs.

New orders for long-lasting U.S. manufactured goods tumbled in December as lower oil prices and softer global demand put more pressure on factories, the latest sign that economic growth weakened significantly at the end of 2015.
 

Key Announcements

10.00 – EUR flash estimate CPI YoY expected at 0.4% against a previous of 0.2%

13.30 – USD advanced GDP QoQ expected lower at 0.8% against previous of 2.0%