- Fresh selling in GBP/USD triggered by Brexit-deal hiccups.
- UK’s GDP and industrial/manufacturing ignored by GBP bulls.
- Soft USD not enough to pause the decline.
A better-than-expected UK Industrial and Manufacturing Production October figures or as-expected monthly GDP failed to encourage bulls to check the GBP/USD fall below mid-1.3300s.
UK trade deficit widened to 12 billion pounds compared to 9.6 billion pounds in the previous month. UK Industrial and Manufacturing Production increased by 1.3 Percent and 1.7 Percent, while GDP rose 0.4 Percent, in October, compared to 1.1 Percent earlier.
GBP/USD has started the decline from the weekly tops near 1.3475-80 yesterday and continued the bearish pace today. The optimism surrounding Brexit-deal talks faded after a meeting between the UK Prime Minister Boris Johnson and the European Commission President Ursula von der Leyen failed to produce any meaningful result.
Top officials have now decided to delay a firm decision on the Brexit talks until Sunday, adding to the uncertainty. The large gaps between the two sides’ demands on many vital issues have kept doubts about a deal alive.
The US dollar also portrays a confusing picture as the fiscal stimulus talks among the lawmakers haven’t made much progress.
Consumer inflation figures and Initial Weekly Jobless Claims are awaited in the US economic docket today, and these along with Brexit and stimulus news will drive the action ahead in the GBP/USD.
At the time of writing, one British Pound buys 1.3324 US dollars, down -0.52% as of 10:11 AM UTC.