The Pound started Wednesday in a drawdown. Overview for 11.12.2019
GBPUSD is falling on Wednesday morning; investors are “digesting” the statistics and waiting for the US Fed meeting.
The British Pound couldn’t keep its positive momentum and right now is falling against the USD. The current quote for the instrument is 1.3130.
Yesterday, the United Kingdom published quite interesting numbers, but the Pound barely responded to them, because market players were and still are focused on the upcoming early parliamentary elections, which are scheduled on December 12th. However, there was no news about this topic in the morning, that’s why investors switched to the statistics.
The British GDP didn’t change in comparison with the previous reading, although it was expected to add 0.1% m/m. Consequently, the UK’s economy stagnated in October, which is not good for the national currency at all.
The Industrial Production added 0.1% m/m in October, thus recovering a little bit after losing 0.3% m/m in the previous month. The forecast was +0.2% m/m, but the sector wasn’t ready for such growth because businesses couldn’t be sure whether the Brexit would happen or postponed again.
The Construction Output showed -2.3% m/m in October after being -0.2% m/m in September and against the expected recovery by 0.2% m/m.
Today, investors’ attention is focused on the US Fed meeting, the last one this year. As a result, GBPUSD may become more volatile in the evening.