GDP data to dominate USD and GBP

Today's Highlights

GDP data to dominate USD and GBP

Euro weaker on ECB bond buying

FX Market Overview

I am delighted for Lewis Hamilton who joins the very small club of multiple F1 championship winners and an even smaller group of British winners. I know Mercedes dominated the championship this year but each driver still has to negotiate 200 miles or curves at break-neck speed every other Sunday in order to be competitive and young Mr Hamilton did it with such a sense of style. Thoroughly deserved in my humble opinion.

It is pretty clear that central bankers are still pursuing the holy grail of a weak currency in order to try to stimulate export growth and dampen domestic inflation. The Bank of Japan is doing so more blatantly than others but the European Central Bank has announced that it is buying asset-backed securities in an attempt to encourage banks to lend in order to revive the struggling Eurozone economy. There are also hints that they may also start buying government debt if necessary. The Euro weakened a little on the announcement. Traders are poised for this morning's German IFO business climate indices; seeking signs of any kind of fledgling recovery. The next couple of days will be quiet on the Eurozone front but there is a slew of German and EU data on Thursday and Friday including inflation and employment data. All will be influential if there is a chance they could trigger the ECB to expand their bond buying.

We also heard over the weekend that China is set to cut interest rates and loosen monetary policy in order to keep the economy rolling. That, following the ECB announcement was enough to push US Share markets higher. The Dow Jones indices finished Friday's session at record highs and are likely to start this week in positive territory. This is a huge week for US data and none more so than Tuesday's release of the Q3 GDP growth data. A small scale decline from the 3.5% previous figure to around 3.1% is forecast. If that isn't enough to stimulate things, Thursday's durable goods, personal income and expenditure and housing data ought to oil the wheels of trading. There is also a raft of business and consumer sentiment data to keep tongues wagging.

Friday's Canadian inflation data was better than forecast and the Canadian Dollar strengthened on the news. 0.1% growth for the month doesn't sound exciting but it was above the markets' forecast of a 0.2% contraction and it brought the annualised inflation rate to 2.4%; up from just 2.0% previously. That is enough to bring CAD buyers out of the shadows.

The week starts quietly as far as UK data is concerned but it sure does ramp up on Wednesday when we get Q3 economic growth figures. Analysts are offering very divergent forecasts for that. Annualised growth forecasts for Q3 vary from 2.7% to 3.1%; well above the growth levels of most countries and a very comfortable level for the UK Government and the BOE. However, that forecast diversity means Wednesday will provide a volatile morning. That's a great opportunity for using automated orders to fulfil your needs.

Away from the markets, a survey of tipping in the UK has discovered the worst place to be a waiter is Gloucester. Apparently one in four of the Gloucester residents who were surveyed, would never tip under any circumstances. Gloucester was followed by Sheffield and Newcastle in the low tip stakes and you may or may not be surprised to hear that Londoners came out to be the most generous tippers. I wonder if a survey of numbers of dishes spilt in diners' laps would be higher or lower in Gloucestershire.