The pound gained across the board this morning ahead of the growth report that is forecasted to confirm UK economy rebounded in first three months of the year. The second estimate of first quarter GDP is expected to remain unchanged at 0.5%, with yearly figure projected to expand by 1.8% in 2011. Market participants will be paying close attention to the growth estimate as UK government is implementing the biggest austerity measures since World War II in order to cut nations swelling budget deficit. Also scheduled for today are the trade figures, private consumption and BBA Loans for House Purchase. Expect for the pound to remain supported against its major rivals should the GDP release confirm expansion in the first quarter of 2011.
The US dollar gained against most of its major rivals during the overnight trade as stocks and commodities declined, boosting demand for the so-called safe haven currencies. Looking ahead to today, durable goods orders headline the economic calendar and they are likely to be a negative factor in second quarter growth as orders are expected to decline by 2.2% in April. Expect for the greenback to remain supported against the euro as Eurozone debt issues continue to push investors into dollar safety.
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