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GBP in focus ahead of UK third quarter GDP data
In Asian trading markets took their lead from a negative finish on Wall Street, with the latest easing measures from the Chinese central bank failing to boost stocks for long. Hong Kong’s Hang Seng was down 0.8 per cent, Australia’s S&P/ASX 200 was flat and Japan’s Nikkei 225 was down 0.8 per cent. In mainland China, the Shanghai Composite was down 1.8 per cent and the Shenzhen Composite was down 2.2 per cent.
Focus will be on the UK which releases a preliminary reading of gross domestic product for the third quarter on Tuesday. The UK’s economy expanded 0.7 per cent in the second quarter of this year, but analysts expect growth to have slowed marginally.
GBP/USD traded a range in Asia between 1.5347-58.
EUR/USD made a modest gain from 1.1045 to 1.1069.
USD/JPY was heavy as the yen strengthened for a second session, gaining 0.2 per cent. USD/JPY traded at 120.78.
Central bank watchers now await, most notably, decisions from the Federal Reserve on Wednesday followed on Friday by the Bank of Japan, which is expected to ease policy further.
The New Zealand dollar weakened 0.2 per cent to US$0.6779 after data showing the trade deficit had hit a 12-month high in September of NZ$1.22bn. The Reserve Bank of New Zealand is due to deliver a policy decision on Thursday, and while the central bank has indicated further easing is likely it has also signaled a reluctance to cut rates too soon in case the global economy slows further in coming months.
Oil prices were on pace for a third straight decline, with Brent crude down 0.3 per cent at $47.42 a barrel and West Texas Intermediate down 0.5 per cent at $43.78. Gold was up 0.1 per cent at $1,164.44 an ounce.
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