Rational FX: US GDP data out today [28/01/2011]

There was no data out for the UK yesterday; however there was some movement in sterling due to the BOE minutes released on Wednesday, regarding the possibility of interest rates being hiked later on in the year which is seeing sterling trade higher against its major counterparts.

The euro zone saw data came in the way of the German CPI yesterday, these were seen lower on the MoM partially due to weather conditions in Europe  towards the end of the year which was seen as factor. However the YoY came in higher this shows a fair reflection of economic growth within Germany with heating oil, gasoline and electricity prices could have pushed up the yearly inflation rate by up to 0.2%.

Consumer confidence was the final piece in data from the euro zone these came in lower the than the month prior, this continues to show the notion that people are still aware of the concerns regarding the euro and eurozone uncertainties.

Durable goods and initial jobless claims were the only two pieces of data from the United States. Initial jobless claims were released higher than last month and show that a weakness in the unemployment market which is major concerns in the US economy as the rate edge towards the 10%. Durable goods were lower in December showing

There is no data from the UK and euro zone today; however as all Fridays traders will be squaring positions ahead of the weekend so we could see some movement in early morning and afternoon trade.

The only piece of data from the United States comes in the way of the GDP, this will be seen as a key piece of data from the world’s biggest economy and looking for an increase will of over 1% which would give the US a boost against its major counterparts.