The Pound opened the Asian session on Friday above at 1.2827 against the U.S Dollar however, the cable shed close to 0.8% later in the day and down 1.8% on the week touching 1.2777 – a level not witnessed since June 2017. The fall came on the back of continued turmoil in Turkey with President Trump confirming he was doubling tariffs on Turkish aluminum and steel, the news triggered the Turkish Lira to collapse sending shock waves through the market and ultimately investors flocking back to safe-haven buying.
On the data front, UK GDP came in line with consensus expectations rising 0.4% in the second-quarter. Although the June monthly read was 0.1% against 0.2% expected. Investment and government spending were stronger than expected, while the pace of private consumption lifted, but still missed expectations.
In other news, Industrial production rose by 0.4% in June, after falling 0.2% in May and the trade deficit narrowed to £1861 million in June, from a deficit of £3141 million in May. Exports lifted again in June, while imports eased resulting in a smaller trade deficit.
Looking ahead, we see the release of UK Average Earnings Index, Claimant Count Change and Unemployment rate.
On the technical front, the Pound could still be under pressure this week after the no-deal Brexit news and Turkey still in the limelight. Support sitting at 1.2670 and resistance up at 1.2800