Elias Haddad at Brown Brothers Harriman (BBH) reports that the Pound (GBP) showed limited reaction to solid UK Q3 GDP, with 0.7% q/q growth driven by consumption and investment.
MUFG’s Lee Hardman highlights that the US Dollar has extended gains, pushing the Dollar Index to a fresh year-to-date high as markets price a faster pace of Federal Reserve rate hikes.
UBS economist Paul Donovan notes that UK GDP has maintained recent strength, with further gains in the third quarter driven mainly by Services. He highlights that UK consumers have seen small positive real income growth and still have scope to lower savings rates, supporting ongoing consumption.