US Q3 GDP Final Estimate in Focus

Data in focus today include a likely unrevised Q3 US GDP print, Eurozone Consumer Consumer Confidence, and Canadian CPI and Retail Sales.

Previous Day's Market Highlights

A quiet UK data calendar left attention firmly on remaining Brexit uncertainties, which put pressure on the pound. As EUR/USD tested 1.19, GBP/EUR fell below 1.13 and GBP/USD tested 1.34 before later correcting lower. Confirmation of the House’s passing of the US tax bill was likely largely priced in and had limited effect on the dollar.
 
Overnight, Gfk Consumer Confidence in the UK fell from -12 to -13, a four-year low, which was attributed to Brexit and the BoE rate hike.
 
The kiwi dollar jumped overnight after Q3 economic growth figures surprised to the upside. GDP rose 0.6% from the previous quarter and 2.7% compared to the same period a year prior. GBP/NZD fell over 0.6% to below 1.91.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP / EUR 1.1251 1.1509 1.1133 3.27%
GBP / USD 1.3358 1.3550 1.3220 2.44%
EUR / USD 1.1872 1.1961 1.1717 2.04%
GBP/AUD 1.7442 1.7999 1.7363 3.53%
GBP / NZD 1.9100 1.9836 1.9080 3.81%
GBP / CAD 1.7141 1.7468 1.6857 3.50%

Today's Market Highlights

An increase in Eurozone Consumer Confidence to a 17-year high could strengthen the euro this morning. Confidence is forecast to tick up to 0.2; it hit a low of -34.7 in 2009.
 
The dollar is in focus this afternoon (13:30 GMT). Releases include the final estimate of Q3 GDP, expected to remain unrevised at 3.3%, and weekly Initial Jobless Claims, forecast to tick up to 231K from 225K but hold well below the 300K level consistent with a strengthening labour force. Largely unchanged figures may have a muted impact.
 
For Canadian dollar traders, CPI and Retail Sales will be of interest (13:30 GMT). A pickup in inflation and Retail Sales could strengthen the loonie.

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Public Sector Net Borrowing (Nov) £8.300B £7.464B
12:30 USD Philadelphia Fed Manufacturing Survey (Dec) 21.5 22.7
13:30 USD Chicago Fed National Activity Index (Nov) 0.09 0.65
13:30 USD Initial Jobless Claims (15 Dec) 231K 225K
13:30 USD GDP Annualised (Q3) 3.3% 3.3%
13:30 CAD Retail Sales MoM (Oct) 0.3% 0.1%
13:30 CAD Core Retail Sales MoM (Oct) 0.4% 0.3%
13:30 CAD CPI YoY (Nov) 2.0% 1.4%
13:30 CAD CPI MoM (Nov) 0.2% 0.1%
13:30 CAD Core CPI MoM (Nov) 0.2%
14:00 USD Housing Price Index MoM (Oct) 0.4% 0.3%
15:00 EUR Prelim Consumer Confidence (Dec) 0.2 0.1