GBP/USD keeps the red near session lows, around 1.3180 region post-UK macro data
- GBP/USD witnessed some follow-through selling for the second consecutive session on Thursday.
- Mostly disappointing UK macro data failed to provide any respite or ease the intraday selling bias.
The GBP/USD pair remained depressed near two-day lows, around the 1.3180 region and had a rather muted reaction to the UK macro releases.
Data published by the Office for National Statistics showed that the UK economy expanded by 1.1% in September and 15.5% during the third quarter of 2020, both missing consensus estimates. Separately, the UK Industrial and Manufacturing Production figures for September also fell short of market expectations.
The data comes on the back of persistent Brexit-related uncertainties and continued undermining the sentiment surrounding the British pound. It is worth recalling that an Irish minister said on Wednesday that EU-UK negotiators are now set to miss their mid-November deadline for a new Brexit deal.
On the other hand, a pullback in the US equity futures drove some haven flows towards the US dollar. This, in turn, further contributed to the offered tone surrounding the GBP/USD pair and contributed to the retracement slide from levels beyond the 1.3300 mark or two-month tops set in the previous day.
Moving ahead, market participants now look forward to a scheduled speech by the BoE Governor Andrew Bailey. This, along with developments surrounding the Brexit saga, will influence the GBP price dynamics and continue to infuse some volatility around the GBP/USD pair.
Later during the early North American session, traders will take cues from the releases of the latest consumer inflation figures and Initial Weekly Jobless Claims data from the US.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
