- Sterling slips ahead of Autumn Statement
- US GDP data should show improvement
- Fed comments lift USD
Monday lacked clout in terms of meaningful data. Hence the markets meandered within previous ranges. Sterling slipped a little but stayed within its support levels but the euro was generally weaker.
Comments from the Fed Chairwoman, Janet Yellen that 'lift-off' as it is being dubbed or 'the first interest rate rise' as those who can't be bothered with catchphrases know it, is imminent as long as the labour market continues to improve and inflation doesn't reverse. The Dollar strengthened on that news. We have to wonder whether the USD will find further strength in today's release of the 2nd estimate of US economic growth. The previous estimate was 1.5% year on year for the Q3 period but many analysts are expecting this to be revised up to 2.0% or maybe even 2.1%. If the actual figure undershoots these forecasts, the Dollar has room to weaken but the data will have to be stellar for the USD to strengthen much more in the short term.
Eurozone data for today comes in the form of the German business climate index as assessed by the IFO institute. Very little change is expected compared to last month's 108.2 reading, so the markets are likely to react quite sharply if the numbers are markedly different.
Sterling's short term weakness probably has more to do with anticipation of tomorrow's Autumn Statement from the Chancellor of the Exchequer or 'next prime minister' as Mr Osborne would like to be known. Either way, the statement is about spending and saving and cutting and all that malarkey so the Pound will bobble around when he speaks but may weaken a little in the run up to tomorrow's statement. For today, traders will have to content themselves with the CBI retail sector survey which may show an improvement on last month's 19 index reading.
And we all know publicity doesn't come cheap but rapper Fetty Wap (yes that is really the name he prefers to be known by) whose real name is Willie Maxwell, was out in a shopping mall in Paramus, New Jersey when he decided to through $2,000 over the balcony down to the people below. The man may be generous and good at PR and he is clearly lacking as a wordsmith because he later tweeted, "never no who needed it.". Perhaps he should have kept the money and spent it on grammar lessons.
Police arrested a T Rex at Gatwick today. He was charged with try to take small arms onto a plane