Yesterday was a relatively quiet day for the markets. Liquidity was very light throughout the day, as the world’s largest economy closed for business to celebrate Thanksgiving. Sterling continued to push higher against the Dollar and Euro after Wednesday’s City positive Autumn statement. The Euro continues to be under pressure as we near closer to the Italian Constitutional referendum. The Greenback remains upbeat ahead of a probable interest rate rise next month.
On December 4th, Italian citizens will vote in a referendum on whether to overhaul their national constitution. The vote is widely seen as determining Matteo Renzi’s political fate, and he may resign of a “no” vote prevails. There’s a growing sense that next weekend’s Italian referendum on constitutional reform is going to be Europe’s ‘Brexit’ or US election. The effect of course will not have the same implications but it could be another example of voters fighting against the establishment.
The second reading of UK’s Q3 GDP figure is set to remain sticky at 0.5%, anything seen above or below this could see some volatility for the Pound.