GDP sends pound into retreat

Yesterdays main news was the figure for GDP in the third quarter this year, the expected figure was 0.6% from the previous 0.7% recorded in the last quarter but the figure dropped to 0.5% which led to the pound dropping off against many currencies including the euro by just under half a cent. The figures was particularly bad for manufacturing which is in decline. If negative GDP data is released in the UK the pound will suffer, this is due to investors not wanting to invest in the UK’s economy thus making a weaker pound.

The only other major data releases came from across the pond with US Durable goods orders coming in better than expected at -1.2% from -2.3% only for the negative consumer confidence data to be released posting a figure of 97.6 from the previous 102.6 subsequently halting any volatility in the market against the dollar.

Overnight Consumer Price Index data came out in Australia, the Consensus indicated that a slight improvement was on the horizon but recorded the same figure as the precious quarter which resulted in the pound gaining a little ground on the Aussie dollar. Today is a relatively quiet day for data releases. The only major announcement coming from the US with the Fed interest rate decision to be addressed. Any indication of interest rates to rise will cause the rates to fluctuate and strengthening the USD.

Keep in contact with your account manager today at currency index.