Sterling reeled off an impressive performance yesterday as
it rose against almost all of its peers. Investors in the pound are speculating
that the UK GDP figures, released today, will return positive as the nation
exits a previous recessionary quarter.

Rising from a 0.4% contraction, analyst estimates place the
UK’s Q3 performance at 0.6%, an outcome that David Cameron may have prematurely
alluded to during Question Time, causing confidence in sterling to increase.

Sterling reeled off an impressive performance yesterday as
it rose against almost all of its peers. Investors in the pound are speculating
that the UK GDP figures, released today, will return positive as the nation
exits a previous recessionary quarter.

Rising from a 0.4% contraction, analyst estimates place the
UK’s Q3 performance at 0.6%, an outcome that David Cameron may have prematurely
alluded to during Question Time, causing confidence in sterling to increase.

The news saw the pound rally the most in three months
against the euro, coinciding with some depressing euro PMI data and poor German
business climate figures.

The dollar also gained in value against the euro as an FOMC
meeting saw the committee opting not to increase the level of monthly bond
purchasing, citing an improving economic performance as sufficient reason not
to boost stimulus and debase the currency.

All eyes will be on the UK today as yesterday’s rallies may be
vindicated at 09.30 this morning as the GBP figures are released. In the US,
analysts expect to gain forward momentum with positive figures across the board,
if combined with positive UK data, cable could ascend.

 

Today’s Key
Announcements:

• 09.00am – GBP – Prelim UK GDP q/q: expected to reach 0.6%
  from -0.4%
• 11.15am – GBP – MPC Member Tucker to speak
• 13.30pm – USD – Core Durable Goods Orders m/m: expected to increase
  to 0.8%
• 13.30pm – USD – Unemployment Claims: expected to decrease to
  371k
• 13.30pm – USD – Durable Goods Orders: large increase
  expected to 7.2%
• 15.00pm – USD – Pending Home Sales m/m: anticipated increase
  to 2.3%