Eyes on EURGBP as UK Prelim GDP to be released


27 October, AtoZForex.com, Lagos – In terms of economic data releases, we only have a few high impact fundamentals on the calendar. Majorly, we have reports from the UK and US, which are likely to be movers of the sterling as well as the dollar. With the Euro having retraced upwards yesterday, the currency still looks to be in a bearish trend. Particularly, the EURUSD trend will be seeking data catalysts to drive the pair further lower.

Yesterday, the week started off with data from the Eurozone as the German Ifo Business climate came in line with expectations at 108.2. A drop from 108.5 recorded in the previous month. This actually marked the first fall in business confidence in four months. Signaling that the slowdown in global demand is taking effect on Europe’s largest economy. However, the Euro stayed calm, retracing slightly from its strong plunge in the previous week.

Also, New Zealand’s trade balance figure showed a deficit of -1222M as “Total Goods” imports reached $52 billion, the highest-ever for a 12-month period. Yet, no major reaction from the NZD was traced, after the release of this report.

UK Prelim GDP q/q (9:30 P.M GMT)

GBPUSD Daily GBPUSD Daily

The change in the inflation-adjusted value of all goods and services produced by the economy has been forecast to come at 0.6 percent. As pound traders keenly seek information from data releases to come in a bid to get a clearer picture on the BoE’s potential next move.

After the European central bank clarified that additional stimulus is on the way, analysts and market participants will now be watching for data to confirm the likelihood of the Bank of England to take the opposite direction on rate hikes by next year. Last week, the Sterling strengthened against the Euro in two months, with the pair seeming to have some additional downside potential.

US Core Durable Goods Orders m/m (12:30 P.M GMT)

This is the measure of change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. It is forecast to come at 0.0 percent. The manufacturing sector remains challenged with an elevated U.S. dollar and sluggish global demand.

US CB Consumer Confidence (2:00 P.M GMT)

Consumer confidence is expected to come at almost the same level with the previous release. In the last month, equity markets have risen, as jobless claims and retail gasoline prices have moved lower. This may influence the balance in consumer confidence.

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