23 Jul 2015
Nowcasts on the UK's data next week - TDS
FXStreet (Guatemala) - Analysts at TD Securities noted the forthcoming data that is due for the UK text week with the key GDP for Q2 and their nowcasts.
Key Quotes:
"Q2 GDP (Tue 28 July): Our nowcasts for UK Q2 GDP have barely budged from 0.6% q/q since April and the release of Q1 GDP at 0.4%. Overall, this suggests the Q1 deceleration was indeed temporary and Q2 is back to trend—if not slightly above—what should be trend going forward. This leaves ample scope for the MPC to be more secure in hiking rates in February as we expect.
2. Mortgage approvals and credit (Wed 29 July): Outside of GDP, it is otherwise a very quiet and light data week heading into the set up for the BoE August Inflation Report. The consensus expects mortgage approvals to remain largely unchanged at 66.3K in June, but similar data from the British Bankers Association diverged last month to show that some momentum was returning to the UK housing market."
Key Quotes:
"Q2 GDP (Tue 28 July): Our nowcasts for UK Q2 GDP have barely budged from 0.6% q/q since April and the release of Q1 GDP at 0.4%. Overall, this suggests the Q1 deceleration was indeed temporary and Q2 is back to trend—if not slightly above—what should be trend going forward. This leaves ample scope for the MPC to be more secure in hiking rates in February as we expect.
2. Mortgage approvals and credit (Wed 29 July): Outside of GDP, it is otherwise a very quiet and light data week heading into the set up for the BoE August Inflation Report. The consensus expects mortgage approvals to remain largely unchanged at 66.3K in June, but similar data from the British Bankers Association diverged last month to show that some momentum was returning to the UK housing market."