httpvh://www.youtube.com/watch?v=KCWv4K1PmVs

·         US GDP 5.7% vs 4.7% expected

·         Dollar pushes GBP below 1.60 level.

·         Equity markets expected to open slightly lower

All this and more is available on our blog. Click here  http://www.worldfirst.com/blog

Today we have published our ‘World First Economic Calendar’ (here)This calendar seamlessly fits into your existing Outlook calendar and details the important releases for upcoming week. Each entry includes the measure’s previous reading and what the market expects this time (figures are subject to change). Simply open the attachment!

US GDP jumped spectacularly on Friday further emphasising the anaemic nature of what is happening in the UK. Q4 figures were expected at 4.7% but emerged a full percentage point higher for the best QOQ growth in 6 years. This kicked the dollar stronger against a basket of currencies as investors bet on further strength, There is a fear behind these figures however; 3.4% of the 5.7% was made up of inventory restocking, businesses refilling the shelves. That’s all well and good as long as we see subsequent increases in retail sales and consumer confidence. Without these we could see production fall off again and the prospects of a double-dip recession loom larger.

As we said last week the risk was the GBP/USD was pushed through the 1.60 level on the GDP release and a general sell-out of sterling after yet another profitable week. As you can see from the rates table below this has happened.

Ahead of us this week we have a lot of event risk in currency land. With 4 central banks reporting (BOE, ECB, RBA and RBNZ) the prospects for volatility are great. The Bank of England is by far the most important meeting of the week.

The accompanying statement will lay out whether we are to endure more QE or whether it is safe to turn the tap off. Should we halt QE we would see it as a modest GBP positive whereas an extension would more than likely see GBP lose a lot of ground against its major competitors. That is at Midday Thursday.

Ahead of us today we have the PMIs and ISM from the UK (09.30), Europe (09.00) and USA (15.00)  respectively alongside UK mortgage approvals (09.30) and US PCE Inflation (13.30). We would expect all 3 PMIs to slip on weather issues but to have little impact on their respective currencies.

You can also follow us live on Twitter at http://twitter.com/World_First