United States Dollar:
GBP weakened yesterday, largely in response to lower GDP figures and UK current account data printing wider than expected. The final GDP reading showed that the economy grew by 0.7% in the third quarter, whilst the current account widened in the third quarter to £27bn. Later in the day, US final GDP showed that the economy grew at 5.0% in the third quarter, up from a previous estimate of 3.9%. Health-care spending contributed 0.52%, up from previous estimates of 0.22%, which went some way to explaining the jump. Despite weaker than expected US durable goods orders, the dollar strengthened and GBP/USD traded to a low of 1.5485. Since then, it’s been flat and opens this morning at 1.5525. We expect a range today in the GBP/USD rate of 1.5480 to 1.558.
Euro:
EUR/USD dropped gradually throughout the day on Tuesday, as the dollar strengthened. It fell to a low of 1.2165 as rumours also started to circulate that the ECB will be ready to begin a program equivalent to full blown QE in the early part of next year. It has sat pretty still throughout the Asian session and opens this morning at 1.2190. We expect a range today in the GBP/EUR rate of 1.2700 to 1.2800.
Aussie and Kiwi Dollars:
AUD/USD and NZD/USD have both been pretty quiet over the last 24 hours and trade at .8110 and .7730 currently. With trading conditions a lot thinner today we could yet still see some volatility but there’s no remaining top tier data before the public holidays to suggest this could be the case. We expect a range today in the GBP/AUD rate of 1.9100 to 1.9225. We expect a range today in the GBP/NZD rate of 2.0050 to 2.0200.
Data releases for the next 24 hours:
AUD: No data
EUR: No data
GBP: No data
NZD: No data
USD: Unemployment Claims, Crude Oil Inventories
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