GBP/USD extends gains near 1.2230

Pound Sterling finds cushion as surprisingly stagnant UK Q3 GDP, Employment data eyed

The Pound Sterling (GBP) discovers some optimism as the UK economy manages to avoid a decline in economic activities in the third quarter. The GBP/USD attempts a recovery on temporary optimism but projections for the growth outlook are downbeat as fresh investments from firms in capacity expansion in the last quarter were significantly down due to poor demand from the domestic and overseas markets.

Bank of England (BoE) policymakers: Huw Pill and Katherine Mann are worried about the knock-on effects of higher interest rates in the battle against sticky inflation and are expected to endorse earlier rate cuts, due to deepening recession fears. Forward action in the Pound Sterling will be directed by UK labor market data, which will be published on Tuesday at 07:00 GMT. Investors would keep hiring and wage growth indicators on their radar. Read more…

GBP/USD extends gains near 1.2230, focus on UK, US inflation data

GBP/USD extends its gains for the second consecutive day, trading higher around 1.2230 during the Asian session on Monday. The GBP/USD pair might have received upward support from the better-than-expected preliminary Gross Domestic Product (GDP) from the United Kingdom (UK) released on Friday, coupled with a weaker US Dollar (USD).

The UK’s GDP for the third quarter declined to 0.0% compared to the market consensus of a 0.1% contraction. On an annual basis, GDP remained consistent by growing at 0.6%, missing lower than the 0.5% estimated. These figures could improve the market sentiment for the Pound Sterling (GBP). Read more…