Forex News

Live Forex news from all over the world.


British Pound Falls on UK GDP Data Miss Then Bounces to New Highs

June 12, 2020 at 10:15 by Simon Mugo

A fan of Great Britain 10-pound notes

The Sterling pound today fell briefly after the release of the latest UK GDP data early London, but quickly recovered as other prints came in better than expected. The GBP/USD currency pair rallied to new highs after investors digested the multiple macro releases from the UK docket, one of which beat analysts estimates.

The GBP/USD currency pair today rallied from an opening low of 1.2545 in the Asian session to a high of 1.2645 driven by investor sentiment and was near these highs at the time of writing.

The currency pair fell at the start of today’s session before inching higher during the Asian session. The down GDP figures released by the Office of National Statistics triggered the pair’s brief decline. The report showed that UK GDP fell 20.4% in April versus the expected 18.7%. However, the country’s visible trade balance report was promising as it fell £7.5 billion as opposed to the consensus estimate of £11 billion. Other periphery reports such as the manufacturing production and industrial production prints fell more than expected, contributing to the pair’s decline.

The release of the UK consumer inflation expectations hours later by the Bank of England contributed to the pair’s recovery as the print fell to 2.9% from 3.0%. Investors sentiment was further boosted by yesterday’s Brexit developments where the UK is expected to drop plans for full border checks on EU imports.

The currency pair’s future performance is likely to be affected by geopolitical events over the upcoming weekend.

The GBP/USD currency pair was trading at 1.2634 as at 10:14 GMT having rallied from a low of 1.2545. The GBP/JPY currency pair was trading at 135.89, having risen from a low of 133.81.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.