Today opened with a big surprise for the UK economy, the preliminary Q3 GDP figures released at 0930 this morning indicated that the economic slow down is not as poor as previously thought. The market expectation was that the figure would be announced at 0.4%, it was actually released at 0.8%, giving Sterling a much needed boost. Sterling has rallied accross the board finishing up vs all of the most actively traded currencies.

This move represents at least temporarily an improved outlook for GBP in the short term. Speculation will now return to the markets as to whether the BoE MPC will increase QE in its next policy meeting on the 11th Nov next month. It is clear that the UK stock markets are fearful that they will not recieve an injection of liquidity reacting with the FTSE falling 0.75%.

The pound has gained over 1.5% against the Euro and 0.85% against the Dollar on speculation that perhaps the BoE will hold their QE program next month at the same levels. Markets will be looking closely at any comments from MPC speakers in the lead upto the meeting.

Tomorrow is a relatively quiet day from the UK yet sees substantial data from Europe and the US. This week will be a busy week with economic releases and will undoubtedly see many trading opportunities.

Best Regards
Luke Zorab
Torfx Currency Dealer
(01736) 335285