Sterling Pound Drops on UK GDP Data and US Inflation Report

The  Sterling pound today was on  a  downtrend from the  Asian session, but recovered slightly after the  release of  positive UK GDP data. The  GBP/USD currency pair’s decline was further accelerated by  the  release of  upbeat CPI data from the  US docket.
The  GBP/USD currency pair today dropped from a  high of  1.2836 in  the  Asian session to  a  low of  1.2738 in  the  early American session.
The  currency pair headed lower in  the  Asian session due to  the  risk-off market sentiment sparked by  the  economic downturn in  Turkey. The  pair halted its decline briefly and  rallied higher after the  release of  the  UK GDP data for  Q2 by  the  Office for  National Statistics. The  GDP data came in  at  a  quarterly 0.4%, which translated into an  annualized 1.3%; both prints met expectations. Other positive releases from the  UK docket such as  the  trade balance data for  June, which came in  at  – £8.6 billion, also boosted the  pair. The  manufacturing production data for  June as  well as  the  construction output both beat expectations to  contribute to  the  pair’s brief recovery.
The  release of  the  US Consumer Price Index report by  the  Bureau of  Labor Statistics, which was in  line with expectations served to  drive the  pair lower. The  core CPI data beat consensus estimates by  coming in  at  an  annualized 2.4% versus the  expected 2.3%.
The  currency pair’s future performance is likely to  be affected by  geopolitical events related to  Brexit and  the  US trade wars over the  upcoming weekend.
The  GBP/USD currency pair was trading at  1.2742 as  at  13:41 GMT having dropped from a  high of  1.2836. The  GBP/JPY currency pair was trading at  141.27 having declined from a  high of  142.53.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.