- GBP/USD continues to lose ground due to risk aversion amid US tariff threats.
- The US PPI provided support to the US dollar by rising 0.4% month-on-month in November, the largest increase since June.
- Traders look forward to key UK economic data due out on Friday for fresh impetus on the nation’s economic health.
GBP/USD maintains losses for the third consecutive day, trading around 1.2660 during Asian hours on Friday. The pair depreciates as potential tariff threats from the Trump administration have boosted the US Dollar (USD) overall and created a headwind for the risk-sensitive British Pound (GBP).
Furthermore, the release of the stronger-than-expected US Producer Price Index (PPI) report on Thursday provided support to the US Dollar and undermined the GBP/USD pair. The US PPI rose 0.4% month-on-month in November, the biggest increase since June, after an upwardly revised 0.3% increase in October. This reading was better than the 0.2% expected.
Traders await the US Federal Reserve (Fed) interest rate decision scheduled for next week. Financial markets are fully pricing in a 25 basis point rate cut on December 18, according to the CME’s FedWatch tool.
Traders are expected to focus on the UK’s monthly Gross Domestic Product (GDP) and industrial production data for October, due to be released on Friday. These figures will provide insight into the economic health of the nation.
Downside risks to the British pound appear limited due to growing expectations that the Bank of England (BoE) will adopt a slower pace of policy easing compared to other central banks in Europe and North America.
economic indicator
Gross Domestic Product (MoM)
The Gross Domestic Product published by National Statistics It is a measure of the total value of all goods and services produced by the United Kingdom. GDP is considered a broad measure of economic activity in the United Kingdom. Generally speaking, an uptrend has a positive effect on the pound, while a downtrend is seen as negative (or bearish).
Next post:
Fri Dec 13, 2024 07:00
Frequency:
Monthly
Dear:
0.1%
Previous:
-0.1%
Fountain:
Office for National Statistics
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.
