British Pound Falls on Weak UK Macro Reports, Despite Upbeat GDP Data

The Sterling pound today fell against the dollar despite the release of the upbeat UK GDP growth monthly estimate as other key macro indicators missed expectations. The GBP/USD currency pair fell as the dollar inched higher, and UK manufacturing data painted a bleak picture of the country’s economic recovery.
The GBP/USD currency pair today fell from a high of 1.3697 during the Australian session to a low of 1.3637 in the early London market but was off these lows at the time of writing.
The currency pair traded sideways earlier today amid news that the UK was planning to vaccinate up to 500,000 people daily against the coronavirus, which could see the entire over-50 population vaccinated by March. However, the release of the latest UK industrial production and manufacturing production reports drove the pair lower. According to the Office for National Statistics, the country’s industrial production fell 0.1% in November, versus the expected 0.5% expansion.
The UK’s manufacturing production also missed estimates by 0.2%. For November, the UK’s trade balance report also missed expectations by coming in at -£16.01 billion versus consensus estimates of -£10.17 billion. Dovish comments about the UK’s GDP by the Finance Minister Rishi Sunak also weighed on the pair. Sunak said that today’s data indicates that things will get harder before they get better, although there are reasons to be hopeful. The greenback’s rally as tracked by the US Dollar Index also contributed to the pair’s decline.
The currency pair’s future performance is likely to be affected by multiple US macro reports scheduled for release later today.
The GBP/USD currency pair was trading at 1.3640 as at 12:01 GMT having fallen from a high of 1.3697. The GBP/JPY currency pair was trading at 141.41 having dropped from a high of 142.11.
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Original from: www.earnforex.com