11.11.2019: GBP gains ground despite weak economic reports (GBP, USD, EUR)

11.11.2019: GBP gains ground despite weak economic reports (GBP, USD, EUR)


The new trading week kicked off with robust activity. During the Asian session, investors were mullingover the news on the US-China trade deal, as well as Chinese inflation data. In the European session, they took notice of the reports on Britain’s economy. According to the reports, the UK economy managed to avoid recession in the third quarter of the year. The UK GDP grew by 0.3% compared to the second quarter and by 1% on a year-on-year basis. Although analysts expected stronger figures, trading activity remained high. The pound/dollar pair was trading in a bullish trend within the day. However, it failed to extend gains above the psychological level of 1.2800. This was probably due to the US market, closed in observance of Veterans Day. Besides, its bullish run was limited by the data on industrial production. The UK industrial sector is still shrinking, with production falling at a much faster pace than experts predicted. In September, industrial output decreased by 0.3% m/m and 1.4% y/y. After a short period of consolidation near its high of 1.1030, the euro/dollar pair is trying to reach 1.1020, unsuccessfully though. Previously, during the session, the pair attempted to recover to 1.1030, but it lacked bullish momentum. The euro gave in to a stronger US dollar, which had gained ground amid uncertainty surrounding the US-China trade conflict. Traders are awaiting tomorrow’s release of ZEW Economic Sentiment. For now, investors are focusing on the news about the first phase of a trade agreement between Beijing and Washington. We keep close tabs on the market developments. Stay tuned!

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