Daily Market Report – 26/11/2014

GBP
Yesterday Bank of England Governor Mark Carney addressed Parliament’s Treasury
Committee with his quarterly Inflation Report – Mark Carney spoke of
“heightened” external risks menacing the U.K. as weakening global economies and
political tensions weigh on the outlook highlighting both Japan and Europe as
key areas of worry, when this happened the pound declined about 0.3% against
the USD and Euro. 

He also told the Treasury select committee that Britain was still an economy

GBP
Yesterday Bank of England Governor Mark Carney addressed Parliament’s Treasury
Committee with his quarterly Inflation Report – Mark Carney spoke of
“heightened” external risks menacing the U.K. as weakening global economies and
political tensions weigh on the outlook highlighting both Japan and Europe as
key areas of worry, when this happened the pound declined about 0.3% against
the USD and Euro. 

He also told the Treasury select committee that Britain was still an economy
that requires monetary stimulus, although he did dismiss the nothing that
stronger stimulus would be added in the near future. Stating that the banks
next move in policy is going to be a rate increase. 
Fellow monetary policy committee member Kristin Forbes also expressed her
belief that inflation would continue to undershoot the banks 2% target, however
felt that it was unlikely the UK would slip into deflation. 

USD
As the US market opened a report showed that the U.S. economy expanded more
than previously estimated in the third quarter, reflecting bigger gains in
consumer spending and business investment and capping the strongest six months
of growth in a decade. Also gross domestic product, the value of all goods and
services produced, rose at a 3.9 percent annualized rate, up from an initial
estimate of 3.5 percent. 

During mid-day trading the US Consumer Confidence report was released, which
had rebounded in October, declined in November to 88.7 down from 94.1 in
October. USD lost 0.5% against GBP and 0.7% against Euro from when the US
market opened.Today


The big news today is the UK’s GDP that is expected to remain unchanged at
0.7% so should not cause any volatility in the pound. With the UK facing
headwinds in Europe and if the figure is lower than expected we could see the Pound
weaken. In The US durable goods orders and initial Jobless claims  are
expected to improve in the afternoon so could see the US dollar gain some
strenth.

Key
Announcements:

09:30 – GBP : UK GDP (Q3) YoY  expected to remain unchanged
at 3%
13:30 – USD : US Durable goods orders (Oct) Expected to be
higher at -0.6% from -1.1% 
13:30 – USD : Initial Jobless claims expected to be slightly lower at
288K from 291K

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