Sterling is mixed as markets are awaiting Q3 GDP data from UK today. Economists expected the UK economy to grow 0.6% qoq in Q3, slightly lower than than Q2's 0.7%. Despite some hawkish rhetoric from BoE officials, the markets are simply not convinced that the central bank will raise interest rate any time soon. Indeed, BoE governor market clarify over the weekend that "if we think there is a prospect, a possibility -- that's a possibility not a certainty -- of rate rises, then that is far, far better to let the British people know so they can prepare." And, once normalization of rates begins, "interest rate increases would proceed slowly and rise to a level in the medium term that is perhaps about half as high as historic averages". And, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year."
Technically, Sterling is mildly vulnerable against dollar and yen for the moment. GBP/USD is expected to be dragged down by EUR/USD and would head back to 1.5106 support. GBP/JPY is staying in sideway consolidation pattern from 180.36. The choppy recovery from 180.64 could end any time and the cross would head back to 180.36. Nonetheless, there is some upside prospect for Sterling against Euro. EUR/GBP's rebound from 0.6935 should have completed at 0.7492 and deeper fall would be seen to 0.6935 low in near term.
Released earlier today. New Zealand trade deficit widened to NZD -1222m in September versus expectation of NZD -822m. Japan corporate service price index rose 0.6% yoy in September. Swiss UBS consumption indicator rose slightly to 1.65 in September. Eurozone will release M3 money supply. Other main focuses today are US durable goods orders and consumer confidence.