Good afternoon,

This morning the Office for National Statistics released GDP figures for the UK economy for the third quarter of the year. A disappointing release for the July to September period saw economic growth slow from the previous quarter reading, in which Covid restrictions were eradicated in England when shops, bars, restaurants and nightclubs were allowed to fully reopen without social distancing rules in place. The third quarter release totalled a 1.3% growth for the UK economy, however this was below analyst expectations. Despite Chancellor Rishi Sunak insisting the result was a positive, as Government policy is working and the UK is recovering from the pandemic, which started nearly 2 years ago now. The pound however has seen further weakness, piling on more pressure following the Bank of England’s decision not to increase interest rates last week.

Data due to be released over the next two working days is extremely thin. This gives little hope to any immediate pound recovery into the weekend with GBP-USD trading just above 1.3370 at the time of writing, the pair has seen a 6.2% drop since the 1.4250 high in June. GBP-EUR is holding ground at 1.1670, with potentially the next leg lower looking around the 1.1620 mark.

It is worth noting today the US are observing Veterans Day and no USD payments can be routed for same day value.

Have a great day.

Author: Jack Nicholls, Senior Relationship Manager.

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