Final UK GDP in Focus; Catalonian Elections Weighed on EUR

Preview text UK final GDP figures and US Durable Goods Orders and Personal Consumption Expenditures are in focus today. EUR saw pressure on Catalonian elections.

Previous Day's Market Highlights

Sterling held below 1.13 against the euro and 1.34 against the dollar. US GDP was revised down from 3.3% to 3.2% in Q3. Preliminary data showed that Eurozone Consumer Confidence rose more than forecast to 0.5 points, a nearly 17-year high.

The euro came under pressure overnight after pro-independence parties won a majority in Catalonia’s regional elections, but reversed some of those losses this morning.
 
The Canadian dollar rose after data surprised to the upside. November CPI accelerated to 2.1% from 1.4% in October, whilst Retail Sales jumped 1.5%. The Canadian dollargained over 0.6% against the pound, briefly pushing the GBP/CAD rate below 1.70.
 
The FTSE 100 hit a record high above 7,600 yesterday as mining and energy stocks gained.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1289 1.1509 1.1133 3.27%
GBP / USD 1.3380 1.3550 1.3220 2.44%
EUR / USD 1.1852 1.1961 1.1717 2.04%
GBP/AUD 1.7358 1.7999 1.7363 3.53%
GBP / NZD 1.9070 1.9836 1.9029 4.07%
GBP / CAD 1.7048 1.7468 1.6920 3.14%

Today's Market Highlights

The calendar today includes the final estimate of Q3 UK GDP (09:30 GMT), with no revisions expected, and Total Business Investment figures, again with no revisions expected. This may have a muted impact on the pound.
 
In the afternoon, the US releases Durable Goods Orders and Personal Consumption Expenditures (13:30 GMT). Gains in these figures could strengthen the dollar.
 
The calendar is fairly quiet next week, given the holidays, but there are a few US releases expected: the S&P/Case-Shiller Home Price Indices on Tuesday, Pending Home Sales on Wednesday, and weekly Initial Jobless Claims on Thursday.
 
Please note that this is the final daily report until 2 January 2018. Have a Happy Christmas and New Year.

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP GDP YoY (Q3) 1.5% 1.5%
09:30 GBP GDP QoQ (Q3) 0.4% 0.4%
09:30 GBP Total Business Investment YoY (Q3) 1.3% 1.3%
13:30 USD Personal Consumption Expenditures - Price Index YoY (Nov) 1.7% 1.6%
13:30 USD Core Personal Consumption Expenditures - Price Index YoY (Nov) 1.5% 1.4%
13:30 USD Personal Income MoM (Nov) 0.4% 0.4%
13:30 USD Personal Spending (Nov) 0.5% 0.3%
13:30 USD Durable Goods (Nov) 2.0% -0.8%
13:30 USD Core Durable Goods (Nov) 0.5% 0.9%
13:30 CAD GDP MoM (Oct) 0.2% 0.2%
14:00 USD Michigan Consumer Sentiment Index (Dec) 97.1 96.8
15:00 USD New Home Sales MoM (Nov) 0.654M 0.685M