Dollar is King

The most highly anticipated release this week lies with the third quarter US GDP reading, and the last before the midterm elections, at 1.30pm today.

Previous Day's Market Highlights

As expected yesterday, The ECB kept monetary policy unchanged whilst also confirming plans to halt its quantitative easing programme by the end of the year despite issues in Italy and risks to the eurozone economy. The decision did not surprise investors and therefore failed to move the market. Draghi acknowledged the recent slowdown in eurozone economic growth but stated that overall it remains consistent with the ECB’s expectations for a steady pick up in growth and inflation.

However, the big move came as US markets opened at 1.30pm. US core durable goods data surprised to the upside registering a 0.8% improvement month on month against a negative forecast of 1.3%. On the back of this news, the greenback capitalised on the struggling pound, breaching the 1.28 mark for the first time since September 5th. EUR/USD also reached a 10- week low at 1.1356.

Today's Market Highlights

The most highly anticipated release this week lies with the third quarter US GDP reading, and the last before the midterm elections, at 1.30pm today.  Forecasting a 3.3% gain and following a Q2 reading of 4.2 percent, this would represent the strongest back-to-back quarters since 2014.

Investors look forward to a packed schedule next week kicking off with Philip Hammonds budget on Monday. Other notable announcements in order of release include German retail sales, BOJ monetary policy statement, US consumer confidence, US ADP, GBP inflation report and monetary policy statement and finally US employment data on Friday.