British Pound Drops on Brexit Uncertainty Amid Latest UK GDP Data

The  British pound today declined against the  US dollar as  investors remained cautious towards the  cable given the  looming uncertainty over Brexit negotiations. The  GBP/USD currency pair’s performance was also affected by  the  strong greenback as  the  US Federal Reserve reiterated its resolve to  hike rates in  December.
The  GBP/USD currency pair today declined from an  opening high of  1.3069 to  a  low of  1.2989 in  the  early European session.
The  currency pair was on  a  downtrend during the  Asian session, but traded flat in  the  early London session after the  UK’s Office for  National Statistics released a  batch of  macro data. The  Office for  National Statistics and  the  third quarter was the  highlight of  the  event as  it remained flat during the  month missing expectations by  0.1%. The  quarterly GDP growth print came in  at  0.6%, which translated into an  annualized 1.5%, as  both prints met consensus estimates. Other relevant data points included the  visible trade balance data for  September, which was better than expected, and  the  industrial production data, which remained flat, missing expectations by  0.4%. The  manufacturing production data and  the  construction output data both came in  better than expected.
The  currency pair was also weighed down by  the  looming uncertainty regarding the  stalled Brexit talks as  the  UK government and  the  EU are yet to  agree on  a  deal even as  the  29 March 2019 deadline fast approaches.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  US PPI and  consumer sentiment data later today.
The  GBP/USD currency pair was trading at  1.3018 as  at  11:16 GMT having dropped from a  high of  1.3069. The  GBP/JPY currency pair was trading at  148.19 having declined from a  high of  148.98.

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