Market insights

UK GDP No Growth - MI120624

The UK's economy appears to be stagnant with no growth or contraction reported.

This seems to be the order of the day at the moment in the run up to the election.

With party manifestos now announced it will be interesting to see how Pound reacts over the next few weeks.

Against the Euro it looks like Sterling is defying gravity as the likelihood of a UK rate cut seems less likely. However against the Dollar it's a different story with a decoupling of rate trends.

However that could all changed today in a massive day for US led news.

First up it's US inflation. The prediction is for 3.4% annualised growth.

Second out of the traps is the FED interest rate decision where the expectation is for no change with the rate being kept at 5.5%.

The big move could come shortly afterwards however when the Federal Open Market Committee holds its press conference.

The early hours of tomorrow brings Australia into focus as they announce their unemployment rate.

So overall it could be a choppy day in the FX markets.

Business news centres on the UK economic stagnation. The report suggests it's the poor weather so far this year that is the root of the lack of growth.

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Economic calendar

US: 13:30 Inflation Report

US: 19:00 FED Interest Rate Decision

US: 19:30 FOMC Press Conference

AUS: Thursday 02:30 Unemployment Rate

As ever we look forward to keeping you in the loop and look out for our next update.

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