On Tuesday, the European currency was unable to continue the upward movement, and after publication of results on the French Industrial Production (2,2% in November), the euro fell by 20 points. Secondary data in the US have released better than expected. NFIB Small Business Optimism in December rose from 98.4 to 105.8. Wholesale Inventories increased from 0.9% to 1.0% in November. The forecast for GDP in the 4th quarter rose to 2.9%.
Today it will be published important data from the UK. Industrial Production is expected growth by 0.8% in November. Manufacturing Production may increase by 0.6% compared to the previous decline by 0.9%. Construction Output is also expected to increase by 0.3%. On the other hand Visible Trade Balance will probably show a decrease from -9.7 bn euro to -11.2 bn euros. At 14:15 GMT+0 BOE Governor Mark Carney will speak. We expect that Carney would say a couple of words about the bold statement of Theresa May and Brexit topic. Then it will be published NIESR GDP Estimate, which are expected to be at 0.5%.
The main news of today is the speech of the new US president Donald Trump. Many investors and journalists want to know further Trump plans without populism of election campaign. Experts predict the familiar thesis, but with mitigation of the common points. Thus, we forecast further growth of the stock market and strengthening of the dollar.
EURUSD pair has practically dropped to 1.0520. We expect further decline of the single currency to 1.0465 and below. GBPUSD took wait and see attitude and is leading its lateral trade around 1.2180. We predict decline of the pound to 1.2050.