US Data Void: Economic Uncertainty Looms

The ongoing federal government shutdown in the US has created a significant void in economic data, prolonging uncertainty for investors and policymakers. The Bureau of Economic Analysis has postponed scheduled releases of third-quarter GDP and September inflation figures, adding to market jitters. This lack of timely information poses challenges for the Federal Reserve as it prepares to make its next interest rate decision on December 10.

Economists had anticipated a slowdown in GDP growth for the third quarter, yet the economy was expected to show resilience. Similarly, core personal consumption expenditures, a key inflation metric favored by the Fed, were projected to remain stable. The Bureau of Labor Statistics had previously canceled its October non-farm payrolls report, further exacerbating the data scarcity.

In parallel, the UK pound has experienced a notable decline, reaching a two-year low against the euro. This depreciation is attributed to weak inflation, poor economic data, and fiscal concerns surrounding the UK government's budget plans. Analysts are closely monitoring the government's commitment to fiscal balance, as investor confidence in sterling's future hinges on the perceived effectiveness of its financial policies.