Focus on US GDP.

After a slow start to the week the on the news front FX markets await key releases today including the US GDP figures as well a German CPI.

GBP (British Pound): The GBP rallied against the EUR yesterday whilst holding value against the USD. This comes after a week of trending down against both following the BoE announcement to hold interest rates. With no announcements out today for the GBP it will respond off of other Major market releases for the USD and EUR.

Tomorrow we have UK GDP released which will show the overall health of the UK economy. This will have an impact on the value of the GBP as investors will be looking to see if the UK is recovering from it’s current slump and become a safe investment again.

EUR (Euro): The EUR has a big day of releases ahead,  EU consumer confidence is out today which will indicate the level of consumer confidence in overall economic activity. Following on from this we have German CPI which will show how well Germany is battling rising inflation in the Eurozone.

Finally, on tomorrow we have the harmonized index of consumer prices for the EU showing the changes in prices throughout the Eurozone. This is seen as a another good measure of inflation within the region and will influence economic policy moving forward.

USD (United States Dollar): The USD continued to strengthen ahead of the release of US GDP today. This will have a large influence of the value of the USD as it shows the overall health of the US economy from a growth standpoint. This is followed by a speech from Fed chairman Powell who will be reacting to these GDP and could shed light on future monetary policy.

Tomorrow,  we have personal consumption expenditures showing the changes in personal spending and earnings. This will be followed by the consumer confidence survey for the US which will influence the US spending moving forward.

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