Q4 UK and U.S. Gross Domestic Product (GDP) reports may generate headwinds for the sterling and the greenback respectively. During the European trading, the 1st estimate of the UK GDP for Q4 is due to be released. The forecast is for the economy to have grown at the same pace as in the 3rd Quarter (+0.4% QoQ). That said, the risks surrounding that forecast as skewed to the upside, considering that the NIESR estimate of GDP showed growth accelerating to +0.6% QoQ in the last three months of 2017. The 1st GDP estimate for Q4 from the US will also be released today. The forecast for economic growth suggest to have slowed to +3.0% QoQ, from +3.2% QoQ in the previous quarter. The risks could be tilted to the upside here as well. The Gross Domestic Product data is considered to be a lagging indicator, meaning it could either confirm or not the trend we have experienced in the previous quarter.
Growth Vs. Trump
Daily Analysis - 26/01/2018