GBP/USD remains in higher trading levels after mixed UK GDP release
Daily Currency Update
Friday morning, the office for National Statistics presented mixed factory data release for November. Monthly growth in manufacturing was slightly higher while annual data failed to match expectations. The UK economy returned to expansion in November by rising 0.3% after contraction of 0.3% in October. An expansion of 0.2% had been forecasted. However, the overall economic data was moderately better than the markets expectations and this does not appear to reduce the fears of a technical recession happening in the UK economy.The Pound may have guidance with the labour market and inflation data released next week. If markets expect a cooling labour
If markets see a cooling labour market condition and a further retraction in price pressures, The Bank of England could make plans for interest rate reductions in its first monetary policy announcement of 2024 of February. Although, it’s showing to be a tough decision for policymakers to choose between higher price pressures and vulnerable economic outlook, however.
The chance of an interest rate cut from the US Federal Reserve have remained firm despite the data released yesterday in US CPI figures. The US Dollar gained against the Pound initially however these were quickly eroded as core inflation continued to soften while headline inflation rose sharply, and Fed policymakers generally consider the core CPI data for decision-making when it comes to interest rates and monetary policy.
Key Movers
Although markets will be relatively quiet today, the US Producer Price Index data for December could present some volatility ahead of the coming weekend.Expected Ranges
- GBP/USD: 1.2754 - 1.2782 ▲
- GBP/EUR: 1.1629 - 1.1641 ▲
- GBP/AUD: 1.8979 - 1.9112 ▲
- EUR/USD: 1.0961 - 1.0981 ▲