US GDP is today's highlight

Today's Highlights

RBNZ inflation forecast reduced

Poor German data stalls Euro

US GDP is today's highlight

FX Market Overview

Monday was not blessed with a lot of data but there were a number of reasons for traders to be active. The German IFO business confidence levels were more positive than analysts had envisaged and the bounce to an index reading of 104.7 marked the first upward move in 6 months. That wasn't enough to lift the euro but it did stop the rot to some degree. This morning's minor drop in German GDP data was in line with expectations and we are awaiting Eurozone inflation data on Friday. So there will be a number of reasons for traders to...well...trade.

Overnight we heard that the Reserve Bank of New Zealand has downgraded its inflation expectations and that weakened the Kiwi Dollar a little.

This morning brought data from the British Bankers Association showing a fall in mortgage approvals. Surely no one can be surprised by that; lending rules have been so heavily tightened that you can probably only get a mortgage if you could pay it back out of the contents of your wallet. We will get further information about the BOE's inflation report at 10.00 and that will be about all there is for the Pound today. Tomorrow brings the Q3 economic growth data and we ought to see GDP growing at roughly 3.0%. Sterling could do with a slight uptick on that but UK expot4ers could do with something below 3%. We will have to wait and see but please be prepared for the worst.

This afternoon is dominated by US GDP growth data which is expected to post s small scale drop to 3.3% or thereabouts. The Dollar which has been resurgent is likely to settle down a bit and may even lose a little value of that forecast is accurate.

And finally, I have a wife who doesn't like to walk along Brighton Pier because she can see the sea through the gaps in the planking. So when a glass walkway was unveiled 138 feet above the Thames on Tower Bridge in London a fortnight ago, Debbie shuddered at the thought. It seems she was right-ish to be concerned. One visitor dropped a beer bottle on the glass and it shattered. Thankfully it was only the topmost of the 5 layers of glass that crazed but I still think that must have been kind of disconcerting for those on the walkway. The expression OMG was made for moments like that.