The British pound was seen posting strong gains yesterday as the third quarter preliminary GDP data showed that the economy expanded at a pace of 0.4% on the quarter. This was better than the forecasts of a 0.3% increase. The data is likely to cement expectations of a BoE rate hike in November.
The Bank of Canada held its monetary policy meeting yesterday, and as widely expected, the BoC’s statement was cautious. The overnight rate was held steady at 1.0%.
Looking ahead, thefocus turns to the European Central bank which is expected to announce its policy decision today. The markets are expecting to see the ECB announce the second tapering to its QE program, by as much as 30 billion euro. The central bank will also give its forward guidance. The euro was seen strengthening ahead of today’s ECB event.
