Today sees the release of US Q4 GDP, personal consumption and GDP figures in the US. These figures are key to traders looking for insight into how the US economy has performed on the open of this year.

We can expect the market to react fiercely to the news if anything other than what is expected is released. We could potentially see another break of 1.60 on bad news yet the market is expecting the stream of positive news to continue betting on the Dollar in opening trade this morning. The GBP/USD market has fallen from highs of 1.5937 to 1.5850.

Consumer confidence in the UK for the month of January, fell to close to a 2yr low overnight. This will undoubtedly weigh on the pound as trading moves forwards to the weekend. The decline in consumer confidence was the greatest since 1992 and further cements the decline in the UK economy seen in recent months. The chance of a doudle dip recession in the UK has augmented considerably and will weigh on pound in coming months.

GBP/EUR continues to trade sideways with the market still very undecided on direction. There is no key data from either country today so market movement will fall folly to investor sentiment. Traders focus will primarily be on the GBP/USD pair and the EUR/USD pair. Both of which at present indicate a shift towards a Dollar rally today.

If you have a currency requirement and have any questions or queries with reference to the markets please don’t hesitate to contact me.

Best Regards
Luke Zorab
Torfx Currency Dealer

“Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions.”