- GBP/USD witnessed some follow-through selling for the second consecutive session on Thursday.
- Mostly disappointing UK macro data failed to provide any respite or ease the intraday selling bias.
The GBP/USD pair remained depressed near two-day lows, around the 1.3180 region and had a rather muted reaction to the UK macro releases.
Data published by the Office for National Statistics showed that the UK economy expanded by 1.1% in September and 15.5% during the third quarter of 2020, both missing consensus estimates. Separately, the UK Industrial and Manufacturing Production figures for September also fell short of market expectations.
The data comes on the back of persistent Brexit-related uncertainties and continued undermining the sentiment surrounding the British pound. It is worth recalling that an Irish minister said on Wednesday that EU-UK negotiators are now set to miss their mid-November deadline for a new Brexit deal.
On the other hand, a pullback in the US equity futures drove some haven flows towards the US dollar. This, in turn, further contributed to the offered tone surrounding the GBP/USD pair and contributed to the retracement slide from levels beyond the 1.3300 mark or two-month tops set in the previous day.
Moving ahead, market participants now look forward to a scheduled speech by the BoE Governor Andrew Bailey. This, along with developments surrounding the Brexit saga, will influence the GBP price dynamics and continue to infuse some volatility around the GBP/USD pair.
Later during the early North American session, traders will take cues from the releases of the latest consumer inflation figures and Initial Weekly Jobless Claims data from the US.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD remains on the defensive around 1.2500 ahead of BoE
The constructive tone in the Greenback maintains the risk complex under pressure on Wednesday, motivating GBP/USD to add to Tuesday's losses and gyrate around the 1.2500 zone prior to the upcoming BoE's interest rate decision.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.