Pound falls as growth data misses target
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Daily Currency Update
The pound has fallen this morning as the latest growth data fell short of estimates. The July - Sept quarter saw economic growth increase by a meagre 0.1% compared to the three months before. This was less than the 0.2% forecast. The reading was pulled lower by September's monthly GDP reading which saw contraction of -0.1% compared to August. A fall in manufacturing output was the main reason for the slip according to the release from the Office for National Statistics. GBP/USD is down to around 1.2660 as a result after looking like it might try and retake the 1.27 level. GBP/EUR has dropped back under 1.20.Key Movers
The annual Mansion House dinner took place last night in London with both the Chancellor of the Exchequer, Rachel Reeves and Governor of the Bank of England, Andrew Bailey both calling for closer ties with Europe in their keynote speeches. They advised Brexit would not be undone however, more is needed to be done to improve ties especially with the current turbulent geopolitical backdrop. President-elect, Donald Trump's cabinet is continuing to take shape with Robert F Kennedy being appointed as Health Secretary. The anti-vaccine proponent is another controversial choice made by the incoming President. His choice of Pete Hegseth, a former soldier turned Fox News presenter as Defence Secretary has raised eyebrows given his limited political experience. US Retail Sales this afternoon is the main data-set of note. Any further news re: political appointments by Trump or comments re: trade, Ukraine and the Middle East will likely dominate the headlines with data taking a bit of back seat for the foreseeable future. EUR/USD has regained some poise and trades around 1.0550.Expected Ranges
- GBP/USD: 1.2600 - 1.2725 ▼
- GBP/EUR: 1.1920 - 1.2040 ▼
- GBP/AUD: 1.9510 - 1.9640 ▼
- EUR/USD: 1.0490 - 1.0625 ▲