The British pound today hit news lows despite news of a Brexit deal between the EU and the UK allowing for trade talks to begin. The pound headed much lower after the release of positive US non-farm payrolls data in the early American session.
The GBP/USD currency pair declined by about 120 points from a daily high of 1.3520 to hit a low of 1.3399 after the release of the NFP data.
The news of the Brexit deal between the EU and UK created some volatility in the cable early in the European session. The release of the positive UK manufacturing production data by the Office for National Statistics could not reverse the pair’s downtrend. The UK’s industrial production was also positive coming in at an annualized 3.6%, versus the consensus estimate of 3.5%. The country’s trade deficit for October was also lower than expected coming in at £1.4 billion as opposed to the expected £3.0 billion. The construction output fell by 0.2% on an annualized basis in October, which contributed to the pair’s decline.
The release of the US change in non-farm payrolls report by the Bureau of Labor Statistics drove the currency pair lower. The NFP data came in at 228,000, which was higher than the expected 195,000. The unemployment rate data, which was recorded at 4.1%, in line with expectations also contributed to the pair’s decline.
Given the upcoming weekend, the currency pair’s short term performance is likely to be affected by political events in the UK and the USA.
The GBP/USD currency pair was trading at 1.3412 as at 15:19 GMT just after the release of the University of Michigan consumer sentiment survey. The GBP/JPY currency pair was trading at 152.05 having declined from a high of 153.40 earlier today.
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