Investors keep a close eye on today’s GDP and PMI data moving the EUR and GBP. The financial markets’ focus is also on the second readout of the UK Q3 GDP and CBI realised sales figures.
Meanwhile, the ECB monetary policy meeting minutes will capture most of investors’ attention after the dovish FOMC meeting minutes on Wednesday.
Canada has also got big data in its pipeline on US Thanksgiving Day. The trading day sums up nicely with the Swiss National Bank’s Chairman Jordan due to speak at 4:30pm GMT. Some volatility is to be expected during his speech as traders will be looking for clues regarding interest rates.
All Eyes on EUR and GBP
Capturing most of the markets’ limelight, EURUSD closed high on Wednesday at 1.17417, hitting its highest daily close since 19 October. The greenback’s broad-based weakness supported the single currency’s surge despite some market talk that the European Central Bank is about to enter a policy hibernation period so long as the economy in the Euro zone keeps up the expected pace.
Leaving the consolidation area and benefiting from a US dollar index in the 5-week trough, EURUSD is on its way to weekly highs at 1.1846 levels on solid PMI data. The two Euro leading powers France and Germany published their manufacturing and services reports, adding to the EUR impetus. Germany’s Markit Manufacturing PMI came it at 62.5 as against the expected 60.4 beating initial estimates. France’s Markit Manufacturing PMI did not fall behind, rising above the 55.9 consensus at 57.5 in November.
GBP gained pace against the USD this morning ahead of the UK’s second estimate Q3 GDP report. Hovering above 1.33145, the pair could potentially hit a high of 1.33367.
TDS analysts suggest that the UK’s Autumn Budget was uneventful as expected, matching their predictions and reflecting in a policy built around a stamp duty cut for first-time buyers. This is unlikely to influence the country’s economy or the government’s finances, TDS highlights.
Across the ocean, in Canada, analysts envisage a 1% growth in core retail sales and a gasoline price hike that should support this impetus.
Ahead of the big news, USDCAD trades around 1.26799.