UK Economy Grows Unexpectedly in Q3
UK Economy Grows Unexpectedly in Q3
On Thursday, the greenback traded close to a three-month high vs. JPY, boosted by higher U.S. bond yields and amid expectations that the Fed will hike interest rates this year. The probability that the Federal Reserve will raise interest rates at its next meeting in December is 74%.
Figures released yesterday showed that the number of Americans filing for unemployment benefits declined last week, indicating continued strength in the labor market and firming economic growth.
The UK's GDP grew by 0.5% in the third quarter, a drop from the previous quarter's 0.7% growth rate, but exceeding the forecasted 0.3%.
In this regard, the Chancellor of Exchequer Philip Hammond said he would need to take steps to support growth in his first budget statement next month, despite data on Thursday showing the economy slowed less than expected after Britain voted to leave the European Union. GBP declined to $1.22, negatively affected by such remarks and could re-test this level by the end of the week.
Gold settled at $1,268 yesterday affected by a strong USD. Markets are awaiting an important U.S. gross domestic product (GDP). Technically, a higher than expected reading could have a negative effect on the precious metal.
On Thursday, oil prices hit $50 amid concerns over a supply glut. U.S. crude failed to settle at $50 and declined to $49.60 during yesterday’s trading session. Technically, it could hit $50 by the end of the week.
The most important economic events:
Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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