Sterling is weaker in response to today’s data run. Economists at Scotiabank analyze Cable’s outlook.
Disappointing October output data
October monthly GDP fell a larger than expected 0.3%, leaving the 3m/3m comparison flat (versus an expected 0.1% increase). Industrial Production fell 0.8% in October (consensus – 0.1%), with Manufacturing, Construction and Services all reporting declines in output as interest rate hikes dampen growth prospects.
GBP/USD is holding a 1.25/1.26 trading range.
Daily and weekly trend momentum signals are still supportive for the GBP but trend momentum signals are weakening, suggesting the window for a GBP rebound and strengthen – by regaining 1.2615 to renew bullish momentum – may be closing.
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