UK data in focus

November 10, 2017

Another day full of data, but it is the UK that is releasing the most significant information. Traders move into the weekend with the markets somewhat flat and quite a way off their highs.

The EUR/USD bumped up overnight as it climbed back into $1.16 territory. It has ebbed and flowed between $1.1580 and $1.1620 for the last few days, but it kicked up to its current level of $1.1641. Whether it will hold at level and become a new support, remains to be seen. The pound is strengthening slightly as the GBP/USD pair ticked up to its current level of $1.3147 ($1.3115 this time yesterday), but as the currency has been through a battering lately, it’s hard to say which way it will go from here.

US stocks copped a hammering overnight as company earnings missed expectations and hearing the news that Trump’s tax plan may not be implemented until next year. The NASDAQ was the biggest loser, falling 39.06 points (-0.58%) to close at 6,750.05. The Dow dropped 101.42 points (-0.43%) to end the session at 23,461.94. The S&P 500 was the best of the worst, losing 9.76 points (-0.38%) to close at 2,584.62. European stocks were even worse than their US counterparts, the DAX getting thumped 199.86 points (-1.49%) to close at 13,182.56. It has now dropped 350 points since its high of over 13,500 earlier this month. The FTSE dropped 45.62 points (-0.61%) to end the session at 7,484.10.

Looking at the day ahead and the most significant data set for release is the UK Manufacturing Production figure. With the pound getting belted lately, economic data will come further into focus and may play a greater role in currency volatility. Away from economic data, Donald Trump is continuing his tour of Asia, so traders should keep an eye on proceedings as big announcements may be made by him which could affect markets. Other data set for release today include:

Australia – RBA Monetary Policy Statement

Japan – Tertiary Industry Activity

US – Prelim UoM Consumer Sentiment & Inflation Expectations

China – M2 Money Supply & New Loans

Europe – French Industrial Production, French Prelim Private Payrolls, Italian Industrial Production

UK – Goods Trade Balance, Construction Output, Industrial Production, NIESR GDP Estimate