Indian GDP Data Disappoints, But GBP USD Exchange Rate Holds Steady Above 1.6000 Level

Published: Friday, 30 November 2012 10:00 BST - Written by John Cameron

STORY LINK Indian GDP Data Disappoints, But GBP USD Exchange Rate Holds Steady Above 1.6000 Level

Economic data released overnight from emerging superpower India revealed that economic activity in the nation had cooled in the third quarter of this year. GDP in India expanded by a respectable annualised 5.3% in the three months to the end of September, however this was down from the previous reading of 5.5% in quarter 2. The news comes as a particular disappointment to Indian policymakers who have made a concerted effort to jump start economic activity in their domestic economy.

The development in India failed to take the edge off appetite for risk in Asian equities markets during the overnight session, with both the Nikkei 225 and Hong Kong’s Hang Seng closing up by almost half a percentage point. UK and European bourses have also generally opened on the front foot this morning.
Looking ahead to today’s session, highlights are set to include an appearance from European Central Bank President Mario Draghi on French television later this morning and this afternoon’s Canadian Gross Domestic Product data for September. Last month’s Canadian growth numbers came as a pronounced disappointment, causing the market to move against the CAD. This afternoon’s quarterly showing will be closely monitored, with a quarter-on-quarter reading of 0.8% for Q3, down from Q2’s stellar showing of 1.9% expected. Such an outcome could see the GBP CAD exchange rate head northwards once more.

Elsewhere in North America, this afternoon’s US Personal Consumption for October data also has the potential to be market-moving with a repeat of September’s 1.7% showing anticipated. Anything below this reading could cause selling pressure on GBP USD.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Canadian Dollar Forecasts Daily Currency U Forecasts