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The Cable has been mostly volatile over the last week, first soaring to 1.52 level and then easing to 1.50 on Friday. Overall, downbeat and dovish comments from the BoE drove the Pound to two-week lows, while the US data further bolstered the Dollar. The US GDP rose by an annualized 2.1% in the three months ending September, on par with market forecasts and improving from a reading of 1.5% seen previously. Meanwhile, the GDP price index annualized ticked higher from 1.2% to 1.3% in Q3, while the PCE annualized index decreased from 3.2% to 3.0%. However, the UK Pound climbed above the 1.51 mark on Wednesday, following the UK Chancellor George Osborne's Autumn Statement. Osborne revealed relatively positive estimates, stating that the deficit is expected to be 3.9% of the GDP in 2015, then 2.5% in 2016-17, and 1.2% and 0.2% in the subsequent years, before moving to a surplus of 0.5% in 2019-20, and 0.6% the following year.
Majority of Dukascopy Community members are bearish on the pair, with 64% of votes speaking in favor of pair's depreciation. Nevertheless, the pair is likely to reach 1.509 by this Friday. Today, on Tuesday, Bank of England Governor Mark Carney is due to hold a press conference about the Financial Stability Report and UK Bank Stress Test results, in London. Also, the UK is to produce report on manufacturing activity, while on Thursday, survey data on service sector activity is going to be published. From the American side, in the same day, the release of data on initial jobless claims and factory orders is expected, while the US Fed Chair Yellen is due to testify about monetary policy before the Joint Economic Committee, in Washington D.C.
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