Yesterday the sterling showed strength against almost all
major counterparts as the sentiment within the UK, completely contradictory to
the previous days’, showed signs of positivity.

Just two days ago the markets were acting very distrustful
of the UK’s GDP figures, predicting a retreat during Q4 with a corresponding
reaction to the currency. In a swing that perfectly illustrates the capricious
nature of the markets, today investors took a positive outlook on what is now
regarded as encouraging signs of recovery.

Yesterday the sterling showed strength against almost all
major counterparts as the sentiment within the UK, completely contradictory to
the previous days’, showed signs of positivity.

Just two days ago the markets were acting very distrustful
of the UK’s GDP figures, predicting a retreat during Q4 with a corresponding
reaction to the currency. In a swing that perfectly illustrates the capricious
nature of the markets, today investors took a positive outlook on what is now
regarded as encouraging signs of recovery.

The refreshed optimism helped to dispel rumination on the
subject of further stimulus. With higher growth prospects, the necessity of MPC
action in the meeting next week is downgraded and as such prompted investors to
recognise there is no imminent new flow of money, which would dilute the value
of the pound.

Following yesterday’s the euro group meetings, Greece’s
publicised struggle to meet troika criteria continues. A decision is now
expected to be made on the 13^th November, delaying the inevitable
that will see the nation granted new liquidity from a third tranche of bailout
funds.

As the US continues its clean up in the wake of hurricane
Sandy, today sees a range of data released in the States as the economy starts
to regain the global attention. Amongst the data released, manufacturing PMI,
consumer confidence and unemployment claims.  

 

Key Announcements
Today:

• 08.00am – GBP – Nationwide HPI: slightly higher than
  expected at 0.6%
• 10.30am – GBP – Manufacturing PMI: expected at 48.1, down
  from 48.3
• 13.15pm – USD – Non-Farm Employment Change: expected to come
  in at 138k
• 13.30pm – USD – Unemployment Claims: slight increase
  expected to 371k
• 15.00pm – USD – CB Consumer Confidence: expected to increase
  to 72.4
• 15.00pm – USD – ISM Manufacturing PMI: slight decrease to
  51.2 expected