GBP
Britain’s brisk economic recovery is showing more signs of cooling after
shoppers bought less, exporters took a hit from Europe’s slump and banks
approved the fewest mortgages in more than a year. Data released
yesterday reiterated that the Bank of England is signalling that it is in
no rush to raise interest rates, even as Britain’s economic growth continues to
outpace that of most other industrialised nations.

GBP
Britain’s brisk economic recovery is showing more signs of cooling after
shoppers bought less, exporters took a hit from Europe’s slump and banks
approved the fewest mortgages in more than a year. Data released
yesterday reiterated that the Bank of England is signalling that it is in
no rush to raise interest rates, even as Britain’s economic growth continues to
outpace that of most other industrialised nations.

The pound touched its lowest level in a week against the dollar after official
figures showed retail sales fell more than expected in September.

EUR
The Eurozone saw a marginal upturn in growth of business activity in October, the
flash PMI results rose from September’s ten-month low of 52.0 to 52.2,
signalling the first upturn in the pace of expansion for three months.
Manufacturing output expanded at the fastest rate for three months, while
growth of service sector activity was unchanged on the six-month low seen in
September. In both cases, rates of growth remained historically weak and below
the averages seen in the year to date. Although output rose at a slightly
faster rate, new orders barely rose in October, registering the smallest
monthly improvement since orders began rising in August of last year. 

USD
Fewer Americans filed applications for unemployment benefits over the past
month than at any time in 14 years as an improving economy prompted employers
to hold on to staff. The four-week average of jobless claims, dropped to
281,000, the lowest since May 2000, from 284,000 the week before. The reading
for the week ended Oct. 18 climbed by 17,000 to 283,000

Sustained demand for goods and services is encouraging companies to retain
workers, even as economic growth slows abroad. As a result, firings have
hovered near historically low levels while gains in payrolls also bolster total
income, giving households the confidence and the means to spend.

Key Announcements:
9:30 BST  – GBP : UK  Preliminary GDP  expected
to decrease to 0.7% form 0.9%
15:00 BST – USD : New Home Sales Expected to come in at 473K

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