The Pound declined against the Euro and the Dollar yesterday even though a report showing that UK mortgage approvals nearly doubled in October. In other news German bank West LB are reported to be struggling to secure funding highlighting the weakness that still lingers in the global banking sector which has hindered the Pound. This morning a report was released that showed the U.K. economy contracted slightly less than initially estimated in the third quarter, but the revised data are unlikely to ease concerns the country is taking longer to emerge from recession than many other major economies.
The Dollar made gains against the Pound and the Euro yesterday as risk appetite decrease following weaker than expected growth in the US. The Commerce Department reported the economy grew 2.8% in the third quarter, lower than the forecasted 3.0%. The Conference Board reported consumer confidence edged higher in November and improved to 49.5.
The Euro declined against the Dollar while making gains against the Pound as data showing better than expected Eurozone industrial new orders. The European Union’s statistics office reported a 1.5% rise in new orders in September, buoyed mainly by demand for ships, planes and trains.
Data released 25th November
UK 09.30 GDP – Revised (Q3)
US 13.30 Personal Income / Expenditure (October)
……………..Core PCE
US 13.30 Durable Goods (October)
US 13.30 Initial Jobless Claims (w/e 21st November)
US 14.55 Michigan Sentiment (November-Final)
US 15.00 New Home Sales (October)
US 19.00 FOMC Publishes Minutes of 3rd/4th November Meeting