As expected Gordon Brown slashed his growth forecasts yesterday, from his initial predictions of 3.0% -3.5%, down to just 1.7%. “No growth Gordon” has now cemented his reputation for fundging his numbers! High oil prices and a sluggish Euro-zone economy were cited as reasons for the flop. Sterling was not affected by the pre-budget report, as the market was already pricing in 1.7% growth, so the reaction was for “sharply unchanged” markets, to steal a phrase from AFX news.
Cable has been the market to watch this week, and as predicted in recent updates, a decent correction is now setting in, with 1.7450 having traded this morning. There will be a couple of US data items this afternoon that could have an impact, these being listed below.
GBP EUR – Support 1.4740 then 1.4700
Resistance 1.4800 then 1.4830
GBP USD – Support 1.7380 then 1.7315
Resistance 1.7495 then 1.7517
DATA: Non-farm productivity 13:30
Factory orders and Consumer confidence 15:00
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