The pound is trading lower this morning even after preliminary Q3 GDP data showed the UK economy growing by a stronger-than-expected 2.3% annualized. This is perhaps because many investors are still bearish on the UK’s outlook as uncertainty still lingers around next year’s official Brexit plans. Tonight’s consumer confidence readings will be the last significant economic data out from the UK for the week.
Meanwhile, the euro is rising as Italy’s consumers and businesses are expressing higher confidence than analysts expected. Tomorrow morning will be heavy with consumer/business confidence readings from the broader Eurozone and a slew of producer and consumer inflation data from France, Germany, and Portugal. While the region continues to show resilience, the euro could have a hard time rising against the US dollar unless there are significantly strong surprises to overshadow the relative strength of the US economy.
Closer to home, the US dollar is rising as pending home sales grew more than expected in September while the weekly jobless claims fell as fewer collected unemployment benefits. Tomorrow morning we’ll see personal expenditures data, consumer sentiment readings, and the coveted, preliminary Q3 GDP growth results.
Elsewhere, the Canadian dollar is trading choppy despite rising oil prices. The Australian dollar is down as investors wait for October’s home sales results and producer inflation data out tonight. The Japanese yen is still weakening against the relatively-attractive US dollar even after the Bank of Japan Governor Kuroda said the central bank may not need as much stimulus as once thought.
EURUSD: The euro is up thanks to higher-than-expected consumer and business confidence out of Italy.
GBPUSD: The pound is down despite positive Q3 GDP growth results, perhaps as investors are still bearish on the UK’s post-Brexit outlook.
AUDUSD: The Aussie dollar is trading lower as investors wait for home sales and producer inflation data out tonight.
USDCAD: The Canadian dollar is trading choppy despite rising oil prices.