GBP/USD eases to sub-1.3200 level after mixed UK macro data, focus remains on Brexit vote

   •  UK GDP/manufacturing & industrial production data comes in stronger than expected.
   •  A larger than expected jump in the UK trade deficit largely offsets the positive readings.
   •  Focus remains on the UK Parliament vote on PM May’s amended withdrawal agreement.

Despite a noteable pull-back from 1-1/2 week tops, the GBP/USD pair held on to its positive tone around the 1.3200 handle and had a rather muted reaction to the latest UK macro data.

The latest Brexit optimism continued underpinning the British Pound for the second consecutive session on Tuesday and assisted the pair to build on the previous session strong upsurge of over 200-pips from a near three-week low level of 1.2960.

The bullish momentum, however, stalled, rather failed ahead of the 1.3300 handle as market participants seemed inclined to take some profits off the table and refrained from placing aggressive bets ahead of the highly anticipated UK parliament vote.

With the incoming Brexit-related headlines turned out to be an exclusive driver of the sentiment surrounding the British Pound, the pair moved little after the latest UK monthly GDP print came in to show a 0.5% m/m growth against 0.2% expected.

Adding to this, the UK manufacturing production rose 0.8% m/m in Jan and industrial production also recorded a growth of 0.6% as against a flat reading expected, though were largely offset by a larger than expected UK trade deficit numbers.

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