The UK economy grew in November, with the Gross Domestic Product (GDP) rising by 0.3% following a 0.1% drop reported in October, the latest data published by the Office for National Statistics (ONS) showed on Thursday.
The market forecast was for a 0.1% increase in the same period.
Meanwhile, the Index of services (November) arrived at 0.2% 3M/3M versus October’s 0.1% (revised from 0%).
Other data from the UK showed that monthly Industrial and Manufacturing Production jumped by 1.1% and 2.1%, respectively, in November.
Market reaction to the UK data
At the press time, the GBP/USD pair is gaining 0.03% on the day to trade at 1.3436.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | -0.03% | 0.00% | 0.11% | 0.03% | 0.14% | 0.07% | |
| EUR | -0.08% | -0.11% | -0.09% | 0.03% | -0.05% | 0.06% | -0.01% | |
| GBP | 0.03% | 0.11% | 0.02% | 0.14% | 0.06% | 0.17% | 0.09% | |
| JPY | 0.00% | 0.09% | -0.02% | 0.10% | 0.03% | 0.11% | 0.07% | |
| CAD | -0.11% | -0.03% | -0.14% | -0.10% | -0.07% | 0.03% | -0.05% | |
| AUD | -0.03% | 0.05% | -0.06% | -0.03% | 0.07% | 0.11% | 0.03% | |
| NZD | -0.14% | -0.06% | -0.17% | -0.11% | -0.03% | -0.11% | -0.08% | |
| CHF | -0.07% | 0.01% | -0.09% | -0.07% | 0.05% | -0.03% | 0.08% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
This section below was published at 5:05 GMT on Thursday as a preview of the UK GDP and Industrial data releases.
UK GDP, Industrial Production Data Overview
The United Kingdom (UK) docket has the Gross Domestic Product (GDP) and Industrial Production data for November to be released by the Office for National Statistics (ONS) on Thursday, later this session at 07:00 GMT.
UK Gross Domestic Product is expected to increase by 0.1% month-over-month (MoM) in November, swinging from the 0.1% decline in October.
UK Industrial Production may rise 0.1% MoM in November, following 1.1% increase in October. Meanwhile, the annual production could fall 0.4% in the same month, following a 0.8% decrease prior.
How could UK GDP, Industrial Production data affect GBP/USD?
GBP/USD may halt its losses if UK GDP and Industrial Production data meet expectations, shaping market views on the Bank of England’s (BoE) policy outlook. Any downside surprises would add to selling pressure on the Pound Sterling (GBP) against its major peers. Monthly Manufacturing Production will also be closely watched.
The GBP/USD pair remains under pressure as the US Dollar strengthens after stronger-than-expected United States (US) Producer Price Index (PPI) and Retail Sales data, along with last week’s lower Unemployment Rate, reinforced expectations that the US Federal Reserve will keep interest rates on hold in the coming months. Traders will also watch the weekly US Initial Jobless Claims data later in the day.
Technically, GBP/USD edges lower, trading around 1.3420 at the time of writing. The momentum indicator 14-day Relative Strength Index (RSI) is at 50 (neutral) after retreating from overbought readings, indicating balanced momentum. The immediate resistance lies at the nine-day EMA of 1.3444. A daily close back above the short-term average could open a path toward the three-month high of 1.3562. The primary support lies at the 50-day EMA of 1.3387. A daily close under the medium-term average would open the doors for the pair to navigate the region around the eight-month low of 1.3010.
