GBP/USD Drops Over 2% Following Disappointing UK Data
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Daily Currency Update
The pound faced a sharp decline of over 2.5% against the US dollar last week, driven by underwhelming UK economic data. September's GDP figures showed a 0.1% contraction, falling short of the anticipated 0.2% growth. This negative sentiment was compounded by strong US economic data, which strengthened the dollar and added further pressure on the pound.This week, key economic indicators could influence the FX market. The spotlight will be on Wednesday’s UK inflation (CPI) report, offering valuable insights into inflation trends and potential directions for the Bank of England’s monetary policy.
Key Movers
EUR/USD dropped over 1.7% last week, closing at its lowest level since October 2023. Starting the week around 1.0550, the euro remains well below the key psychological threshold of 1.08, which previously acted as a strong resistance level.Despite record-low unemployment and easing inflation, the eurozone's recovery trajectory remains uncertain, weighed down by ongoing economic challenges.
Expected Ranges
- GBP/USD: 1.2565 - 1.2645 ▼
- GBP/EUR: 1.1925 - 1.1995 ▼
- GBP/AUD: 1.9505 - 1.9615 ▲
- EUR/USD: 1.0505 - 1.0575 ▼