020 7898 0500The big release from the US on Friday was the GDP growth rate for the third quarter of 2018. Last quarter, the economy posted extremely impressive growth figures of 4.2% and
another strong showing was expected this time. In keeping with plenty of economic data from America of late, the figure actually came in better than analysts had predicted,
posting 3.5% growth.
You might have expected some significant sterling strengthening on the back of the release but it wasn’t to be. Although expectations were exceeded, the fact remains that a
drop from 4.2% to 3.5% is rather substantial so it’s not all that much to write home about. Ironic really, that the UK is lucky to get 1.2% growth, while China’s economy is
slowing at 6.5%. It just goes to show that context is everything in matters such as these.
The other release of note from the US on Friday was the University of Michigan’s consumer sentiment for October, which came in slightly below expectations at 98.6. It was a
drop from 100.1 the previous month and the decline was down to less favourable economic conditions and higher inflationary pressures.
Today we will see the personal income and spending figures, but attention will be on the UK’s Autumn Budget for 2018.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on
020 7898 0541.
