EUR
Yesterday morning German business confidence unexpectedly rose for the first
time in seven months after the country’s economy returned to growth and the ECB
added stimulus to the eurozone. This helped the Euro move about a quarter
of a cent after trading near a two-year low against the dollar early in the
session. The consensus among economist was for a positive figure of 103
but the final figure was higher at 104.7.

EUR
Yesterday morning German business confidence unexpectedly rose for the first
time in seven months after the country’s economy returned to growth and the ECB
added stimulus to the eurozone. This helped the Euro move about a quarter
of a cent after trading near a two-year low against the dollar early in the
session. The consensus among economist was for a positive figure of 103
but the final figure was higher at 104.7.

ECB member and Bundesbank president Jens Weidmann has suggested
yesterday that loosing  monetary policy could encourage short
term demand. He did however reiterate that  to enhance
growth, essential structural reforms from EU member
countries  were vital for long term growth in the eurozone. 

USD
Yesterday The Dallas Fed’s monthly manufacturing index for November showed that
general business activity remained unchanged at 10.5, the same level as
 October but better than the expected  forecast fall to 9.

However the production index, a key measure of manufacturing conditions, fell
from 13.7 to 6, indicating output growth slowed in November. Markit’s
purchasing managers index fell from 57.1 in October to 56.3, below expectations
and the lowest reading since April. A fifth consecutive fall  in
growth in the service sector suggests that the economic upturn in the US
 has lost considerable momentum, though it is important to note that the
pace of expansion remains robust by historical standards. 

Today
Today in the  US we have GDP   which is expected to come out
lower. If the figure released is in line with expectations  we could
see  some Dollar weakness. However  consumer confidence figure
is released 90 minutes later  and is expected to be a positive
reading, and the dollar could rise again ultimately this could cause some
volatility for the USD throughout the day.

In the UK, we have mortgage approvals which are expected to have slowed down,
so we could see a slight dip in GBP after the figure is released if it
is in fact a lower figure than last month.. There is also an
inflation report hearing at 10 am from the treasury committee this
morning so we could see some volatility while Mark Carney
testifies in front of parliament today.

Key
Announcements

09:30 – GBP : UK Mortgage approvals (Oct) expected to be lower at
38.5 from 39.3
10:00 – GBP: UK Quarterly Inflation Report Hearing 
13:30 – USD : US Q3 GDP figures expected to be lower
to 3.3% from 3.5% 
15:00 – USD : US Consumer Confidence (Sept) expected to
be higher at 96 form 94.5

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