The Pound Sterling edged higher against a weaker greenback ahead of UK data, and managed to maintain momentum despite the fact that that data, when released, was largely disappointing. Market players were awaiting, among other events, for the preliminary 3rd quarter figures on the UK’s growth. Analysts had predicted a rise to 0.4% from -0.2 in the previous reading, but the numbers fell short with a rise instead to 0.3%. Monthly data on manufacturing and industrial production were also worse than expected at -0.4% against a predicted -0.3% and -0.3 against a predicted -0.2%, respectively.
The GBP/USD was higher as of 11:13 am in London, trading at $1.2830, up 0.4463. The pair has ranged from a low of $1.27646 to a high of $1.28317 in today’s trading day. The EUR/GBP was trading down at 0.8599 Pence, a loss of 0.276% and off the earlier low of 0.85979 Pence.
Look Ahead to Tuesday Numbers
Tomorrow, FX traders will be watching for the data on the UK’s labor market. Currently, economists are predicting that average earnings (without a bonus) for the 3-month period through September, will be stagnant at 3.8%. Meanwhile, they are also forecasting that the ILO unemployment rate is likely to be unchanged at 3.9%. Later on Tuesday, ZEW surveys will show what Germany’s business leaders are predicting about the German economy. Overall, the predictions are still dismal at -22 for the current reading and -13 for economic sentiment though both forecasts are still an improvement over last month’s readings.