In the US session GDP data was published. Real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the third quarter of 2017, according to the "second" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.1 percent. With this second estimate for the third quarter, the general picture of economic growth remains the same; nonresidential fixed investment, state and local government spending, and private inventory investment were revised up from the prior estimate.
However, the focus of the session was on Janet Yellen's testimony. Federal Reserve Chair Janet Yellen called on Congress to adopt policies that will get U.S. economic growth out of its "disappointingly slow" post-recession pattern. "To generate a sustained boost in economic growth without causing inflation that is too high, we will need to address these underlying causes," Yellen said, according to prepared remarks she will deliver to a joint congressional panel. " As for monetary policy, the Yellen Fed has begun normalizing the highly accommodative measures it took to boost the economy. The Fed has approved four interest rate hikes since December 2015 and begun to reduce its $4.5 trillion balance sheet. Yellen said "gradual increases" in the Fed's benchmark rate will be appropriate as the economy continues to recover.
There will be no data releases from the UK tomorrow. In the US session Unemployment Claims figures will be published. Small rise to 241,000 is anticipated.
Figures to watch:
Unemployment Claims (Thursday 14:30)
