Blog

Market Update

• Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, election, EUR, GBP, Mark Carney, No Deal, Prime Minister, UK, Uncategorised
• November 11, 2019
• No Comments

The pound rose 0.2% against a weakened dollar this morning after a flurry of UK data, including GDP figures.

UK September Gross Domestic Product (GDP), manufacturing production, industrial output and goods trade balance data were all released this morning at 9:30am. All three came in weaker than the expectations, we saw I slight dip and then a quick recovery, not really moving the pound significantly.

The GDP growth is at its weakest currently in the last ten years. On an annual basis, UK GDP only rose by 1.0% in July-September compared with Q32018.

That’s the lowest annual growth rate since the first quarter of 2010 (as Britain clawed its way out of the Great Recession).

Analysts said Moody’s decision on Friday to lower the outlook on Britain’s Aa2 rating to negative from stable did not move the currency as it provided no additional insight. The move means there’s a one-in-three chance the rating will be cut in the next 18 months to two years

The pound may also be boosted by reports over the weekend that Nigel Farage’s Brexit Party is considering withdrawing some candidates to make it easier for the Conservative party to secure a majority in next month’s general election.