Britain to grow at fastest pace since 2007
It was a bit of a slow news day as yesterday’s lack of data hasn’t given the markets too much to grab onto. With speculation that the ECB could be moving closer to Quantitative Easing, this is only likely to happen if we see the Eurozone sinking into deflation.
Fastest Rate since 2007
In the UK, the British Chamber of Commerce have announced that the British economy will grow at its fastest rate since 2007. Short term growth prospects are extremely positive, but as always there is caution that 2016 may see a slowdown and Britain is overly reliant on consumer spending with more attention needing to be paid to investment and exports.
Whilst the conflicts in the Middle East and Russia/Ukraine have seen the US Dollar strengthen due to its safe haven status, the other traditional currency safe haven, the Swiss Franc has witnessed similar strength. CHF is at its strongest level against the Euro for 21 months and there are rumours that the Swiss National Bank may intervene to defend its cap of 1.2000 against the Euro. This would be the first time it has made such a move in 2 years.
Lots of data out today as there is unemployment data and CPI out of Germany, Consumer confidence and industrial confidence out of the Eurozone, UK Consumer confidence and house prices and GDP, jobless claims and home sales out of the US.