As investors digest news that the US Federal Reserve will reduce its monthly bond purchases by USD 10 billion, markets now await the US GDP data - out on Thursday.
Saxo’s Mads Koefoed is expecting encouraging numbers: “I think the fourth quarter GDP will show that the US had a strong ending to 2013 and I expect GDP to have risen to around 3 percent on an annualised basis. We have really seen an acceleration in the US economy in the second half which I expect will carry on in 2014.”
He adds: "Consumers will be the key reason why we’ll see the strong growth rate in the fourth quarter and residential investment will also be a contributor."
In a statement, the Fed said that "growth in economic activity picked up" since it last met in December. It was the final FOMC meeting for outgoing Fed chairman Ben Bernanke, as Janet Yellen is set to take over once he steps down at the end of this week.
Meanwhile, Spain's economic recovery picked up pace in the fourth quarter; its gross domestic product rose 0.3 percent, in line with a previous estimate by the country's central bank and statements made by Finance Minister Luis de Guindos.
Author Mads Koefoed, Head of Macro Strategy, Saxo Bank
Topics Macro, euro, Spain, US economy, USD Index, Saxo TV, mads koefoed
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