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UK Data Disappoints
GBP has been back under selling pressure again this week as the latest data highlight further economic weakness.
Monthly GDP figures released yesterday showed the UK economy shrank by 0.3% in December. This was far worse than the expected 0% reading the market was looking for.
On an annual basis, the economy grew just 0.6%, marking its slowest pace of growth since 2012. Alongside this, manufacturing production came in at -1.7% over the month, versus an expected decline of -0.3%.
Carne Warns of Rate Cut Risk
The data comes just days after BOE Governor Mark Carney took traders by surprise as he warned that the BOE might be forced to cut rates, despite the UK PM agreeing on a Brexit deal.
Carney had previously said that the BOE projected that the UK economy would rebound firmly over 2020 as businesses and consumers reacted to the removal of uncertainty around Brexit.
However, speaking last week, Carney warned that such a pickup might not materialize. And, given the sub...
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