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GBP: UK GDP expectations and March cut view – TD Securities

TD Securities expects UK GDP to rise 0.1% m/m in December, driven mainly by manufacturing, with services flat. This would leave Q4 2025 GDP at 0.2% q/q, matching consensus and MPR projections, and only modest services growth. Such tepid performance is seen reinforcing MPC doves and supporting TD’s view of a March rate cut.

Soft growth seen backing early easing

"We expect GDP to eke out a slight gain in December (TDS/Mkt: +0.1% m/m), largely through contributions from the manufacturing sector (TDS: +0.1% m/m, Mkt: -0.1%), as the index of services remains flat (mkt: 0.1%)."

"This would round off 25Q4 GDP at 0.2% q/q, in line with both the consensus and MPR projections, while the services sector likely only shows 0.1% q/q."

"Tepid growth would further feed into the MPC doves' narrative that slack is building in the economy, and reinforce our view of a March cut."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

US Equities: Cross-border tech demand stays firm – BNY

BNY’s Geoff Yu highlights that US equity markets have stabilized despite recent volatility, with the Tech sector still leading allocations.
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NZD/USD advances amid USD weakness ahead of US employment report

NZD/USD trades around 0.6060 on Wednesday at the time of writing, up 0.25% on the day, and posts a nearly two-week high amid persistent US Dollar (USD) weakness. The bullish move comes as investors position cautiously ahead of the release of the US Nonfarm Payrolls (NFP) report.
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