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GBP / USD remains negative near session lows around 1.3180 following UK data

  • GBP / USD witnessed a follow-up sell-off for the second time in a row on Thursday.
  • Disappointing UK macro data did not provide any respite or alleviate intraday selling bias.

The pair GBP/USD reacted to macroeconomic datas from the United Kingdom with a decline to new two-day lows at 1.3168. Previously, in the Asian session, the cross had traded at a daily high of 1.3228.

The data published by the Office of National Statistics showed that the British economy expanded a 1.1% in September and a 15.5% during the third quarter of 2020, both figures below consensus estimates. Separately, the UK manufacturing and industrial production figures for September also fell short of market expectations.

The data showed the persistent uncertainties related to e Brexi and continued to undermine the sentiment surrounding the pound sterling. It is worth remembering that an Irish minister said on Wednesday that negotiators of the European Union and the United Kingdom they are about to miss the mid-November deadline for a new Brexit deal.

On the other hand, the withdrawal of US equity futures it boosted some safe haven flows to the US dollar. This, in turn, contributed to the tone offered around the GBP / USD pair and contributed to the recoil drop from levels beyond the mark 1.3300 or the two-month maximums established on the previous day.

Next, market participants await the scheduled speech from the Governor of the Bank of England, Andrew Bailey. This, along with the events surrounding the the story of Brexit, will influence the dynamics of the price of the British pound and continue to infuse some volatility in the GBP / USD pair.

Later, during the early days of the US session, traders will look for clues in the release of the latest consumer inflation figures and the first weekly US unemployment benefit data.

Credits: Forex Street

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