The GBP/USD currency pair today traded mostly in a tight sideways range having rallied slightly in the early European session after the release of UK quarterly GDP data. The pair retraced some of its gains during the mid-European session, but rallied higher after the release of US personal income data for November.
The GBP/USD currency pair today traded in a 40-point range capped below the crucial 1.3400 resistance level while establishing a daily low at 1.3358.
The release of the UK GDP data for the third quarter by the Office for National Statistics triggered a brief rally by the pound. The quarterly GDP data recorded 1.7% growth on an annualized basis, which was higher than the market expectation of 1.5% growth. Other releases from the UK docket such as the Index of Services for October also met expectations at 0.2%, which boosted the pound. The total business investment in the UK also recorded improved growth at 1.7% on an annualized basis in the third quarter.
The release of US personal income data for November by the Bureau of Economic Analysis also contributed the greenback’s weakness. The Core PCE print was in line with expectations by coming in at 1.5% on an annualized basis in November. The US durable goods orders released by the Census Bureau also disappointed as they were recorded at 1.3% for November versus the expected 2.0%.
The currency pair’s future performance is likely to be affected by political events in the UK and USA due to the upcoming Christmas holidays.
The GBP/USD currency pair was trading at 1.3372 as at 15:38 GMT having dropped from a daily high of 1.3398. The GBP/JPY currency pair was trading at 151.56 having dropped from a high of 151.87.
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