GBP/USD down to 1.6050 on Concerns about U.K. Economic Data

The pound slipped for a third day versus the dollar amid speculation U.K. economic data due this week won’t be strong enough to sustain gains that propelled it to a one-month high.

Sterling weakened to a two-month low versus the euro before data economists said will show house-price growth and manufacturing expansion slowed this month. A gauge of whether economic data is beating forecasts dropped to the lowest level in two weeks. Britain’s gross domestic product grew 0.8 percent in the third quarter, the most since 2010, the government said last week. Ten-year gilt yields were about one basis point from the lowest level since August.

“The economy is recovering but we would be getting ahead of ourselves to suggest there’s an explosion in growth,” said Jane Foley, a senior currency strategist at Rabobank International in London. “There’s a lot of good news already in the price of the pound and it will take something significant to push it higher.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.