GBP/USD Price Forecast: Tests YTD low on dismal UK GDP; seems vulnerable ahead of US PCE
The GBP/USD pair attracts heavy selling during the first half of the European session on Friday and dives back closer to mid-1.3200s, or the year-to-date low touched last week, in reaction to the disappointing UK macro data. Figures from the UK Office for National Statistics (ONS) showed that the economy stagnated in January, compared to a 0.1% increase recorded in the previous month and market estimates for a 0.2% growth.
Other data showed that Industrial Production declined by 0.2% in January, while Manufacturing Production rose 0.1% during the reported month. The backward-looking data comes on top of heightened uncertainties over conflicts in the Middle East, which could have a ripple effect on economies around the world. This, in turn, weighs heavily on the British Pound (GBP), which, along with sustained US Dollar (USD) buying, exerts additional downward pressure on the GBP/USD pair. Read more…
Pound Sterling weakens below 1.3300 vs. a broadly firmer USD on disappointing UK data
The GBP/USD pair turns lower for the fourth straight day following an intraday uptick to the 1.3370 area on Friday. The selling bias picks up pace in reaction to mostly disappointing UK macro data, which, along with a broadly firmer US Dollar (USD), drags spot prices below the 1.3300 mark during the early European session.
A report published by the UK Office for National Statistics showed that the economic growth remained flat in January, missing estimates for a 0.2% rise and down from a 0.1% increase recorded in the previous month. Adding to this, monthly Industrial Production declined by 0.1% MoM in January, while Manufacturing Production climbed by 0.1% during the same period. The data weighs heavily on the British Pound (GBP) and drags the GBP/USD pair to the lower boundary of the weekly range. Read more…