US: New home sales likely to have fallen slightly by 0.9% in September – Nomura Analysts at Nomura expect US new home sales to have fallen slightly by 0.9% m-o-m to 555k in September, reflecting disruptions to sales activity brought by Hurricane Irma.
Key Quotes
“Moreover, Hurricane Harvey affected the Census Bureau’s data collection in the South in August. As delayed data become available, August sales estimates could be revised in the September report. Incorporating the negative impact from the recent hurricanes, it appears likely that residential investment will subtract from real GDP growth in Q3.”
“Looking ahead, recovery work after the recent storms could boost construction modestly in the South, which will likely be smoothed out over next couple of quarters. However, shortages of skilled labor and of developable lots could continue to weigh on inventory growth, constraining sales.”Read More →

UK mortgage approvals decreased in September, data published by the UK Finance showed Wednesday.
The number of mortgage approvals fell to a 3-month low of 41,584 in September from 41,762 in August.
Gross mortgage borrowing totaled GBP 13.3 billion, in line with recent months, but 9 percent higher than September 2016.
Annual growth in net mortgage borrowing came in at 2.7 percent in September. Annual growth in credit card borrowing was 5.5 percent versus 5 percent in previous month. Meanwhile, personal loans and overdrafts growth rate weakened to -2.2 percent from -1.7 percent.
Further, data showed that annual growth in overall consumer credit increased to 1.5 percent from 1.4 percent in August.Read More →

Italy's industrial orders grew at the fastest pace in more than a year in August, data from the statistical office Istat showed Wednesday.
Industrial orders advanced 8.7 percent month-on-month in August, the fastest since June 2016, when they grew 14.7 percent. Orders had increased only 0.4 percent in July.
Demand from domestic market advanced 12.7 percent and that in non-domestic market climbed 3.3 percent.
At the same time, industrial turnover expanded 2 percent in August after falling for two straight months. This was the biggest monthly growth since February.
On a yearly basis, industrial order growth improved to 12.2 percent from 10.1 percent in July. Meanwhile, growth in industrial turnover eased to 3.4 percent from 4 percent.Read More →

Forex news for the European morning trading session 25 Oct 2017News:
Hammond says GDP data shows UK has a successful and resilient economyUK Q3 GDP appears to set the seal on a BOE rate hike, or does it ?More from Davis (2) : Intention is to bring Brexit deal to UK parliament firstMore from UK's Davis: Implementation period will be quite simpleUK's Davis says he expects guidance on implementation period in DecemberIFO poised to raise German GDP forecastSpain's Rajoy says election in Catalonia is the only way outDai-Ichi Life likely to increase unhedged foreign bond holdings in Oct-March periodMeui Yasuda Life says it will increase foreign bond holdings in H2 2017-18Forex option contract expiries for today 25 OctIndia's 2017-2018 GDP expectations lowered by economistsYen and swiss franc sold again as USD demand prevailsTrading ideas for the European sessionForexlive Asia FX news wrap: Australian 3Q CPI disappointsData:UK Q3 GDP first reading qq 0.4% vs 0.3% expGerman..Read More →

Here's the latest on today's notable expiries for the 14.00 GMT cut 25 OctEURUSD: 1.1600 (EUR 410m) 1.1700 (765m) 1.1720-25 (510m) 1.1750 (800m) 1.1800 (545m) 1.1850 (740m)
USDJPY:113.00 (USD 550m) 113.25 (695m) 113.50-55 (465m) 114.00 (2.2bln) 114.60 (130m)GBPUSD: 1.3100 ( GBP 300m) 1.3185 (230m) 1.3250 (150m)EURGBP: 0.8875 (830m) USDCAD: 1.2700 (USD 700m)AUDUSD: 0.7760 (AUD 260m) 0.7800 (435m) 0.7825 (540m)NZDUSD: 0.7000 (720m)On Monday I posted more notable expiries for the week here so you were forewarned about the large USDJPY interest and I've highlighted it a few times this session too. EURGBP contracts at 0.8875 could be a target and/or base.
Remember that these are “vanilla” options so still in play right up to expiry at 14.00 GMT even if breached in the meantime, unlike barrier options which cease to be once hit. The actual amounts can change right up to expiry.
For my latest post on how to use this info click hereRead More →

AUD/USD: Aus CPI-led sell-off extends, 0.7700 tested Aus CPI misses expectations Risk-off seeps back Focus shifts to US durable goods The AUD/USD pair extended its four-day losing streak on Wednesday, with the downbeat Australian inflation data-led downside gaining further traction in the European session.
AUD/USD headed to 0.7650?
The Australian dollar continues to get battered by its American counterpart so far this session, in the wake of worse-than-expected Australian Q3 CPI data, which came in well below the RBA’s 2-3% price target. Disappointing Aus CPI figures cold poured water on the RBA rate hike prospects while bolstering the central bank’s neutral bias.
Further, renewed uptick seen in Treasury yields across the curve also exacerbated the pain in the major. Rising demand for the US rates weighs down on the alternative risk currency AUD. More so, the USD bulls gear up for the US durable goods data, which could seal in a Dec Fed rate hike, bringing the monetary policy diverg..Read More →

GBP/USD extends post-UK GDP up-move, retakes 1.32 handle and beyond • Better-than-expected UK GDP reaffirms BOE rate hike action
• Breakthrough 1.3225-30 zone needed to confirm additional up-move
The GBP/USD pair built on its post-UK GDP up-move and jumped back above the 1.3200 handle, reversing all of previous session's losses.
Stronger growth numbers underpinning
The pair has been finding some decent support near the 1.3115-10 region and caught some fresh bids following the release of better-than-expected UK preliminary growth figures for the third-quarter of 2017.
Today's slightly stronger reading now seems to have negated yesterday's dovish comments by the BOE Deputy Governor Jon Cunliffe and reaffirmed an eventual BOE rate hike move at next week's meeting.
• UK growth helps tick November rate hike box – ING
The British Pound got an additional boost after the UK Chancellor Hammond offered his thoughts on the latest GDP report saying that we have a succe..Read More →