Friday’s data over the pond showed that the US economy grew at its fastest pace for 2 years in the 3rd quarter of this year, giving the Federal Reserve a huge backing with regards to their likely interest rate change in December. The growth was predicted to be around 2.5% but they outdone themselves with a figure of 2.9%. Consumer spending (making up two thirds of the world’s biggest economy) was a key factor in the positive numbers. The election campaign is expected to make for a volatile November for the dollar, but there is no major concern now for Yellen and co to make their expected move come December’s rate hike.

With a number of key figures in the UK recently resigning, being sacked or promoted, Mark Carney is said to have agreed to stay in his key role long term. This has no doubt left some relieved as the Bank of England met with both Theresa May and Philip Hammond this week. There was some uncertainty around the Bank of England governor, but rumours have surfaced this weekend that he has agreed to stay in his position for the full 8 years expected of him.

Super Thursday back this week

Super Thursday is back this week, as Mark Carney delivers what is expected to be a no change in terms of interest rates. There were hints at a second rate cut in the UK post Brexit, but a continued surprise in healthy data has left senior figures with no doubt that a downgrade in rates is not required.

Today we have Eurozone Consumer confidence, Gross Domestic Product, with German Retail Sales of note in terms of key data.

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Article by Lee Chappell, Corporate Dealer
* Information courtesy of Currencies Direct
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