Pound Sterling Price News and Forecast: GBP/USD remains constructive despite weak UK data
|GBP/USD Forecast: Next hurdle for Pound Sterling aligns at 1.2360
GBP/USD struggled to preserve its bullish momentum early Thursday and went into a consolidation phase at around 1.2300. In the second half of the day, September inflation data from the US could influence the US Dollar's (USD) valuation and drive the pair's action.
The UK's real Gross Domestic Product (GDP) expanded by 0.2% on a monthly basis in August, the UK's Office for National Statistics reported early Thursday. This reading followed the 0.6% contraction (revised from 0.5%) recorded in July and matched the market expectation. Other data from the UK revealed that Manufacturing Production and Industrial Production declined by 0.8% and 0.7% in the same period, respectively. Read more...
GBP/USD outlook: Remains constructive despite weak UK data
Cable is holding around 1.23 handle in early Thursday, after repeatedly cracking pivotal barrier at 1.2328 (Fibo 38.2% of 1.2800/1.2037 bear-leg, reinforced by falling 30DMA), but the action remains within a narrow range and with limited upside.
Sterling remains constructive despite weak UK economic data released earlier today, as Aug GDP was in line with expectations, but July’s figure was revised downward, while manufacturing sector performed below expectations and trade gap widened in August, adding to negative signals. Read more...
Pound Sterling holds recovery despite weaker-than-anticipated UK factory data
The Pound Sterling (GBP) holds onto gains inspired by the higher risk appetite of the market participants. The GBP/USD pair remains bullish despite the Office for National Statistics (ONS) reporting that United Kingdom factory data in August contracted for the second time in a row. UK firms operated on lower capacity as they aimed to achieve efficiency by cutting higher inventory backlogs and their respective labor forces due to declining demand.
A slowdown in demand and declining overall output is expected to discomfort Bank of England (BoE) policymakers, who are preparing for November’s interest rate decision. While the BoE's Katherine Mann continued to favor further policy-tightening to bring down inflation to 2% in a timely manner, the central bank's Swati Dhingra supported a rate cut if the growth rate fell beyond expectations. Read more...
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