Yesterday’s UK Q3 GDP came in at 0.3%, therefore avoiding two consecutive quarters of negative growth, something which economists would deem a technical recession. The pound failed to be inspired by the release as many had already forecast the UK would grow in Q3. The pound lingered around $1.28 and €1.16 against the US dollar and euro for most of the day, until an announcement was made by Nigel Farage, representing the Brexit Party. Farage confirmed that he will not run candidates in areas where the Conservatives won seats in the 2017 general election. This pushed the sterling significantly higher against its peers. Within minutes GBP had advanced 0.6% against both the buck and shared currency.
Today is another big day in the markets. On the data front, the UK sees another labour market report. Germany will release a ZEW economic sentiment indicator. Australia will host a consumer sentiment indicator in the evening while Japan releases inflation data. The US will see 3 Federal Reserve speakers as well as a speech from President Trump to the Economic Club of New York.
Written by Viv Savani. 8:07am, November 12th 2019
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