Economic Announcements for week 45
Q4 is now on the way here is a quick round-up of the economic announcements to look out for this week along with an overview of GBP/USD and GBP/EUR.
November 8th
14:15 USD Fed Chair Powell Speech
November 10th
07:00 UK GDP 3 Month Avg (September) - GDP measures the value of goods and services produced in the UK. The reading refers to a three-month growth rate, which is a better indicator of the underlying growth in GDP as the monthly figure is likely to be more volatile. In this sense, the monthly release can be thought of as a monthly update on three months’ worth of data on the economy, rather than a figure representing the economy in just one month.
UK GDP Growth Rate YoY (Q3) - GDP The United Kingdom is the sixth-largest economy in the world and the second-largest in Europe after Germany. The Services sector is the most important and accounts for 79 percent to total GDP. The biggest segments within Services are: government, education and health (19 percent of total GDP); real estate (12 percent); professional, scientific and technical activities and administrative and support services (12 percent); wholesale and retail trade (11 percent); and financial and insurance (8 percent). Industry accounts for 21 percent of the GDP and the largest segments within this sector are: manufacturing (10 percent of total GDP) and construction (6 percent). The Agriculture sector accounts for only 1 percent of GDP.
Forecast: 0.5% Previous: 0.6%
UK GDP YoY (September) - GDP measures the value of goods and services produced in the UK. The reading refers to a year-on-year growth rate.
Previous: 0.5%
15:00 US Michigan Consumer Sentiment (November) - The Index of Consumer Expectations focuses on three areas: how consumers view prospects for their own financial situation, how they view prospects for the general economy over the near term, and their view of prospects for the economy over the long term. Each monthly survey contains approximately 50 core questions, each of which tracks a different aspect of consumer attitudes and expectations.
Forecast: 64 Previous: 63.8
GBP/USD
GBP has seen a 2.14% rise against USD following last weeks "soft" jobs data news from the US with fewer jobs than expected with an increase of 150,000 showing 297,000 rather than the previously reported 336,000.
Looking at the price action chart for GBP USD, GBP has broken out of the current trend line and also broken the 1.23 level of resistance which could now act as a level of support. GBP touched the next level of resistance at 1.2407 and now waiting for this level of resistance to be broken to push towards the next level of resistance at the next level of resistance is 1.2539.
It wouldn't be unexpected to see price range between 1.23 to 1.24113 as the markets digest the economic news.
GBP/EUR
Last week's news by the BOE to continue to freeze interest rates sparked a sharp rise of GBP against EUR with a 0.45% increase over Friday 1.1440 showed to be a strong level of support and as we go into Monday the rally from Friday has continued with GBP breaking through the 1.1526 level of resistance and breaking out of the downward trend line.
The next level of resistance is around 1.1569 It could be expected to see price range between 1.1528 and 1.1569 over the coming week.
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