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Message: [QUOTE="TheChartSniper-plexytrade, post: 242025, member: 132431"] [RIGHT][B]14.03.2025[/B] [/RIGHT] [B]On Friday, 14th March 2025, high-impact news releases from the UK and US will feature:[/B] [LIST] [*]GDP m/m [*]Prelim UoM Consumer Sentiment [*]Prelim UoM Inflation Expectations [/LIST] [CENTER][B][U]UK Economy Grows 0.1% in Q4, 1.4% Annually, with Strong December[/U][/B][/CENTER] The British economy showed modest growth in late 2024, with a 0.1% quarterly expansion in Q4, avoiding a forecasted contraction, according to a release on February 13, 2025. This was driven by a 0.2% rise in services and a 0.5% increase in construction, though production fell for the fifth consecutive quarter, led by declines in manufacturing and mining. Exports dropped 2.5%, while imports rose 2.1%, and fixed capital formation fell 0.9%, offset by higher government spending and inventory changes. Year-on-year, GDP grew 1.4% in Q4, the fastest since Q4 2022, fueled by household consumption and government spending, though business investment and net trade were drags. In December 2024, the economy expanded 1.5% year-on-year, the strongest performance since October 2022, and grew 0.4% month-on-month, the highest in nine months, supported by gains in services and production, particularly in pharmaceuticals and machinery. However, construction and some sectors like utilities saw declines. For 2024 as a whole, the economy expanded 0.9%, up from 0.4% in 2023, demonstrating resilience despite mixed sectoral performance. [LIST] [*]The GBPUSD remained bullish throughout the day because UK economic resilience reduced the likelihood of BoE rate cuts, while softening U.S. inflation increased expectations of Fed policy easing. This monetary policy divergence—combined with Eurozone weakness—shifted market sentiment toward buying GBP and selling USD, sustaining GBP strength until the market close. [/LIST] The next GDP release is scheduled for [B]March 14th at 7:00 AM GMT.[/B] The chart shows the reaction of GBPUSD on February 13th, 2025. [ATTACH type="full"]31649[/ATTACH] [B]Disclaimer:[/B] The content provided is for educational and informational purposes only and is not intended as trading or financial advice. This analysis seeks to enhance your understanding of market behavior and highlight potential opportunities that may have existed, offering insights into how the market operates and the possibilities it may present. [CENTER][B][U]US - Prelim UoM Consumer Sentiment[/U][/B][/CENTER] The University of Michigan revised US consumer sentiment sharply lower to 64.7 in February 2025 from an initial 67.8, marking the weakest level since November 2023. Both current economic conditions (65.7 from 68.7) and future expectations (64 from 67.3) declined, with sentiment falling across all demographic groups. A 19% drop in durable goods buying conditions, driven by concerns over tariff-related price hikes, led the decline. Expectations for personal finances and the short-term outlook fell nearly 10%, while the long-term outlook dropped about 6%. Inflation expectations for the next year surged to 4.3%, the highest since November 2023, while the five-year outlook rose to 3.5%, the biggest monthly increase since May 2021. The next Preliminary University of Michigan Consumer Sentiment release is scheduled for [B]March 14th at 2:00 PM GMT.[/B] [CENTER][B][U]US - Prelim UoM Inflation Expectations[/U][/B][/CENTER] In February, the University of Michigan consumer survey indicated that year-ahead inflation expectations rose to 4.3%, a 1 percentage point increase from January and the highest since November 2023. Concerns over rising prices, fueled by President Trump's tariff policies, led to a sharp decline in consumer sentiment, with the headline index falling to 67.8. Despite the postponement of tariffs on Canada and Mexico, fears of inflationary pressure remained, particularly affecting lower-income households. Longer-term inflation expectations edged up slightly to 3.3%. [LIST] [*]The USD strengthened due to rising inflation expectations and resilient wage growth despite a weakening labor market. Higher inflation forecasts increase the likelihood of future Federal Reserve rate hikes or maintaining elevated interest rates, making USD-denominated assets more attractive. Additionally, the increase in average hourly earnings supports consumer spending, reinforcing economic resilience despite a higher unemployment rate and declining consumer sentiment. [/LIST] The next release of the Preliminary University of Michigan Inflation Expectations is set for [B]March 14th at 2:00 PM GMT.[/B] The chart shows the EURUSD's performance on February 7, 2025. [ATTACH type="full"]31650[/ATTACH] [B]Disclaimer:[/B] The content provided is for educational and informational purposes only and is not intended as trading or financial advice. This analysis seeks to enhance your understanding of market behavior and highlight potential opportunities that may have existed, offering insights into how the market operates and the possibilities it may present. [/QUOTE]

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