Forex Flash: Is the British Economy Starting to Turn the Corner? - Wells Fargo

FXstreet.com (San Francisco) - The United Kingdom will face some key data next week, the Market Economics will publish the PMI services, the National Statistics will release Industrial and manufacturing production, The NIERS institute will show the 3-month to October GDP estimate, the Trade balance and specially, the BoE will hold its monthly meeting to discuss its monetary policy on Thursday Nov 08.

With the recent and coming data, the Wells Fargo's analysis team is asking: is the British Economy Starting to Turn the Corner? In a recent report, the bank pointed that "recent data show that real GDP in the United Kingdom grew at an annualized pace of 4.1 percent in the third
quarter, the strongest outturn in five years."

Wells Fargo comments that despite solid gains in consumer spending, "it would be premature to claim that a self-sustaining recovery has taken hold. Growth was boosted by some one-time
factors in Q3. Moreover, exports and business fixed investment spending remained weak."

"The Bank of England likely will remain on hold at its policy meeting next week, but further QE could be implemented later if growth returns to a sluggish pace," commented Wells Fargo.

In addition, "it now seems likely that the BoE will remain on hold for the time being," concluded the bank on regarding the upcoming BoE decision.