British Pound Volatility Ahead on UK GDP Data, Davis Testimony
- British Pound may get a boost if Q3 GDP data boosts BOE rate hike bets
- Remarks from Brexit Secretary Davis to inform on May cabinet cohesion
- Aussie Dollar down on soft CPI data, politics keep NZ Dollar pressured
UK GDP data headlines the economic calendar in European trading hours. Consensus forecasts see output rising 0.3 percent in the third quarter, matching the increase in the three months to June. UK economic news-flow markedly improved relatively to analysts’ projections since mid-August however, opening the door for an upside surprise that might cement November BOE rate hike bets and boost the British Pound.
Elsewhere on the docket, Brexit Secretary David Davis is also scheduled to appear for questioning in the House of Commons. Yesterday’s appearance by Chancellor Philip Hammond seemed to hint that a bit of common ground with EU negotiators is emerging. It will be interesting to see if that extends to the more combative Mr Davis, signaling the administration is at last coalescing around a single vision.
The Australian Dollar underperformed in Asia Pacific trade after third-quarter CPI data fell short of expectations. The currency fell alongside local front-end bond yields, suggesting the result triggered a dovish shift in RBA monetary policy expectations. The New Zealand Dollar continued to decline as the ascent of Labour Prime Minister Jacinda Ardern continues to unnerve investors.
Have a question about trading in the FX markets? Join a Q&A webinar and ask it live!
** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya's analysis directly via email, please SIGN UP HERE
Contact and follow Ilya on Twitter: @IlyaSpivak
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.