UK activity data for October was weak. Monthly GDP fell 0.1%, compared to expectations for a 0.1% increase, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
GBP weakens broadly
“Manufacturing, construction and services results were weaker than expected. The UK also posted a larger-than-expected trade deficit for the month. However, the BoE/Ipsos inflation expectations survey firmed at 3 .0% for the next 12 months, down from 2.7% in October. The pound weakened broadly on weak growth data, lifting EURGBP for a second day.
“Cable is stabilizing in the 1.26 region on the short-term chart after sliding in European trade. The fall of the pound out of its trading range around 1.2750 and a low close on the week is turning the picture “A little more gloomy technical after the pound’s failure against the 200-day moving average (1.2820) last week. A lower close on the week will point to more losses ahead.”
“EUR/GBP’s bounce from the low 0.82 zone has abruptly cut short the GBP bull run on the cross, at least for now. Better selling interest may re-emerge closer to the 0.83 region.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
