Afternoon Market Update – 25/11/2016 – by Jaz Singh

The major data this morning came in the form of the UK GDP for the 3rd quarter. This was in-line with forecast figures for both the QoQ and YoY metrics. However, total business investment for the UK beat estimates, giving the sterling some impetus. These sterling moves were particularly strong against the USD which has sold off across the board this morning. The dollar index has retreated from its decade highs, currently trading near the $101.50 level. The greenback has been extensively bid since Trump’s election with markets certain a December rate hike will occur. Looking further ahead, 2 rate hikes for 2017 are priced in. Further dollar upside may recede for now as we wait for clarity regarding the President elect’s policy. The European bourses remain range bound today, reluctant to extend to the upside as per their American counterparts. US equity futures point to upside at the cash open this afternoon. Crude oil has slipped during today’s trade targeting the $47 level. Copper has also retreated after gaining 21 percent this month. This afternoon we see inventories and PMI data from the US to take us into the weekend.