- GBP/USD remains steady after mixed GDP and industrial data released from the United Kingdom.
- UK GDP expanded by 1.0% in the third quarter, surpassing the 0.7% growth recorded in Q2.
- The monthly UK Industrial and Manufacturing Production both declined by 0.5% and 1.0%, respectively, in September.
GBP/USD breaks its five-day losing streak, trading around 1.2680 during the early European session on Friday. The pair remains steady after the release of mixed Gross Domestic Product (GDP) and Industrial data from the United Kingdom (UK).
The UK economy grew by 0.1% quarter-on-quarter in the three months ending September, following a 0.5% expansion in Q2. This growth fell short of market expectations for a 0.2% increase. On a year-on-year basis, UK GDP rose by 1.0% in Q3, matching forecasts but higher than the 0.7% growth recorded in Q2.
In September, monthly UK GDP shrank by 0.1%, reversing a 0.2% expansion in August and missing the expected 0.2% growth. The Index of Services for the three months ending in September held steady at 0.1% 3M/3M, unchanged from the prior reading. However, Industrial and Manufacturing Production both declined in September, falling by 0.5% and 1.0% month-on-month, respectively. These figures were weaker than anticipated.
The US Dollar (USD) edges lower due to remarks from Fed Chair Jerome Powell on Thursday. Fed’s Powell stated that the recent performance of the US economy has been "remarkably good," allowing the Federal Reserve the flexibility to gradually lower interest rates. Meanwhile, Richmond Fed President Thomas Barkin stated that while the Fed has made strong progress so far, there’s still more work to be done to keep the momentum going.
Additionally, the US Producer Price Index (PPI) rose by 2.4% year-over-year in October, up from a revised 1.9% increase in September (previously 1.8%) and surpassing market expectations of 2.3%. Meanwhile, the Core PPI, which excludes food and energy, increased by 3.1% YoY, slightly above the forecasted 3.0%.
The US Dollar Index (DXY), which tracks the US Dollar's performance against six major currencies, trades around 106.70. after pulling back from its yearly high of 107.06 recorded on Thursday. This decline could be attributed to a slowdown in "Trump trades."
Economic Indicator
Gross Domestic Product (YoY)
The Gross Domestic Product (GDP), released by the Office for National Statistics on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in the UK during a given period. The GDP is considered as the main measure of UK economic activity. The YoY reading compares economic activity in the reference quarter compared with the same quarter a year earlier. Generally speaking, a rise in this indicator is bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.
Read more.Last release: Fri Nov 15, 2024 07:00 (Prel)
Frequency: Quarterly
Actual: 1%
Consensus: 1%
Previous: 0.7%
Source: Office for National Statistics
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD recovers toward 1.0600 as US Dollar retreats ahead of data
EUR/USD extends the rebound toward 1.0600 in the European session on Friday. The renewed upside is mainly linked to a broad US Dollar pullback as traders look to the topt-tier US Retail Sales data for a fresh impetus. ECB- and Fedspeak also eyed.
GBP/USD holds above 1.2650 after UK data
GBP/USD holds its recovery momentum above 1.2650 in European trading on Friday. The mixed UK GDP and industrial data fail to deter Pound Sterling buyers as the US Dollar rally takes a breather ahead of Retail Sales and Fedspeak.
Gold treads water above $2,545 support, US data eyed
Gold price is treading water above the $2,545 demand area on Friday, consolidating Thursday's late rebound. Fed Chair Powell's hawkish shift fuels rate cut uncertainty, capping the metal's upside. Meanwhile, traders cash in on the US Dollar long positions ahead of key data releases.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.