EU Morning Report - British GDP boosts the sterling

The euro (EUR) is weakening against most of its major counterparts, as market participants are feeling more risk averse. The European Central Bank (ECB) President Draghi met with German lawmakers in a closed-door discussion on Wednesday, specifically regarding the Outright Monetary Transactions (OMT) bond buying program and reiterated that the program will not cause inflation or weaken ECB’s independence. The International Monetary Fund (IMF) revised its forecast for Ireland's GDP growth in 2013 down to 1.1% from 1.4% naming external trading conditions. Investors worldwide are expected to closely monitor the US 3^rd quarter GDP release later today at 12:30 GMT.

§ The New Zealand dollar (NZD) is falling against the US dollar (USD), following comments by Reserve Bank of New Zealand (RBNZ) Governor Wheeler, that a lower exchange rate is best for New Zealand’s economy only if price stability and financial strength are not jeopardised.

§ OIL is now trading just above 84.90 US dollars a barrel that seems to be acting as a short-term support. A break below this level could pave the way for lower lows.

§ The British pound (GBP) advanced from 1.6029 to 1.6116 versus the US dollar (USD) following a better than expected GDP release at 1.0%.

Stay in tune throughout the day with foreign exchange bullets!