British Pound Rose Supported by Industrial Production Data
The British pound has appreciably strengthened, supported by positive data on industrial production, trade balance and easing concerns about Brexit. Industrial production in the UK increased by 0.7% mom, and by 2.5% yoy in September, compared with the forecast of 0.3% mom, 1.9% yoy. Trade deficit also narrowed to GBP -11.3b in September.
The US dollar remains the weakest major currency for the week amid uncertainty over the tax reform. The US Senate proposes to postpone the reduction of the corporate tax until 2019. The Senate will hold hearings on the bill next week.
The RBA lowered its forecast for GDP growth. It is expected, that the economic growth will reach 2.5% this year, compared with 2-3% projected in August. The central bank of Australia also predicts that the consumer price index will rise to 2% by the end of this year.