Dollar weakens – UK GDP as expected

The dollar is currently at a one-month low against other major currencies today, as the minutes of the Federal Reserve’s most recent policy meeting continued to weigh on the greenback.

Trade volumes were expected to remain thin ahead of the today’s U.S. Thanksgiving holiday.

The greenback weakened after the minutes of the Fed’s latest meeting showed that some policymakers remain concerned over persistently low inflation.
The report also showed that the Fed expects to raise interest rates in the “near term”, adding to expectations for a December rate hike.
However, the central bank added that economic data will determine the timing of future rate hikes, which could mean a slower pace than expected for 2018.

When Theresa May visits Brussels today, EU negotiators will be listening intently for signs the British prime minister is preparing to risk a domestic backlash and raise her offer to secure a Brexit deal in December. We understand she is looking to double the offer.

Brexit-bound Britain slashed its economic growth forecasts and ramped up its borrowing plans going into the 2020s, but Chancellor Philip Hammond announced several spending steps aimed at winning back voters.

Hammond was under heavy pressure to use his budget statement on Wednesday to turn around the fortunes of Prime Minister Theresa May.

Hammond looked relaxed and cracked jokes as he said he would offer help to voters by abolishing a property purchase tax for 80 percent of first-time home-buyers, keeping a freeze on fuel duty and spending more on the health service.

The markets have brushed off the cuts in growth forecast yesterday and the pound has gained across the board against the major currencies.

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