The British pound has traded in a wide range against the US dollar during today’s session as the bears and the bulls fought for control over the currency’s price direction. However, neither camp was winning after the release of positive UK quarterly GDP data accompanied by disappointing public borrowing data.
The GBP/USD currency pair today traded between a high of 1.2698 and a low of 1.2642 as the sellers and buyers fought for control.
The currency pair opened today’s session on a downward trend as bears drove the pair to its daily lows. The pair then rallied in the late Asian session and into the early European session as buyers pushed the pair higher. The currency pair then declined following the release of the disappointing UK public sector finances report by the Office for National Statistics. The public sector net borrowing figure came in at £6.3 billion, which was lower than the expected £7.0 billion print, but higher than the previous figure. The final figures for the UK’s Q3 GDP growth estimates met expectations by coming in at 0.6%, which translated into an annualized 1.5%, but could not lift the pair.
The currency pair’s gains were limited by the uncertainty towards Brexit as well as the stronger US dollar. The greenback rallied against its peers in the Asian session as tracked by the US Dollar Index, which hit a high of 96.64.
The currency pair’s short-term performance is likely to be influenced by the release of US Q3 final GDP data later today.
The GBP/USD currency pair was trading at 1.2667 as at 11:32 GMT having dropped from a high of 1.2698. The GBP/JPY currency pair was trading at 140.81 having declined from a high of 141.18.
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