Pound extends advance

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Fundamental Headlines

• U.K. GDP data beat expectations – Wall Street Journal

• Asian markets decline – Wall Street Journal

• Stable dollar leaves bourses trendless - Financial Times

• U.K. GDP rises twice as much as forecast on stimulus - Bloomberg

• Weber says he won’t change His Strips to Become ECB President - Bloomberg

GBP/USD: Economic activity in the U.K. soared 0.8% in the third quarter after climbing 1.2% the quarter prior amid economists’ expectations of 0.4%. At the same time, the annualized rate jumped 2.8% to mark the highest reading since September 2007. Indeed, the British pound began its advance prior to the release amid rumors that the report was leaked. However, at 8:30 GMT, economic activity was confirmed and the sterling extended its northern journey. Taking a look at the breakdown of the report, total services advanced 2.1% from a year ago, while construction added a massive 10.9%. Today’s report bodes well for Great Britain and reduces the likelihood that the BoE would expand quantitative easing in the near term as many market participants were expecting. Traders will now shift their focus to the economic releases from the world’s largest economy due out later today. On tap are the U.S. consumer confidence, house price index, and the Richmond Fed Manufacturing reports.

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