GBPUSD approaching 1.2500, pushed down by grim UK GDP figures.
The GBPUSD is giving up previous gains on Wednesday. As a run of disappointing UK macroeconomic data has raised fears about the country’s economic outlook. The extends its reversal and reaches lows at 1.2500 UK GDP and industrial production both fall short of expectations. GBPUSD investors all eyes are now on the Fed. Which is expected to increase USD volatility later today.
According to National Statistics statistics, the UK economy contracted by 0.3% in October. Significantly above the -0.1% forecast and following a 0.2% gain in September. In addition, manufacturing output fell 1.1%, versus market forecasts of a flat performance. Sending industrial output down 0.8% rather than the 0.1% loss predicted by experts.
The lack of UK statistics presents a difficulty to the BoE
These data cancel out the positive impact of Tuesday’s robust employment report. And give the Bank of England pause ahead of Thursday’s monetary policy announcement.
The Fed is anticipated to maintain its target rate steady at 5.25% – 5.5% later today. The GBPUSD investors will be paying close attention to the dot plot and Chairman Powell’s remarks about the bank’s future policy steps, which might increase USD volatility.
