Sterling Pound Rallies Despite UK GDP Missing Estimates

The  pound today edged higher against the  US dollar despite the  UK’s latest GDP print missing expectations boosted by  the  positive investor sentiment. The  GBP/USD currency pair was also lifted by  news that the  Rishi Sunak would announce a  new jobs support programme later today fueling Britain’s economic recovery.
The  GBP/USD currency pair today rallied from a  low of  1.2921 in  the  mid-London session to  a  high of  1.2988 and  was trading near these highs at  the  time of  writing.
The  currency pair fell shortly after the  release of  the  downbeat UK GDP report for  August. According to  the  Office for  National Statistics, the  country’s GDP grew 2.1% in  August versus the  consensus estimate of  a  4.6% expansion. Britain’s trade deficit figures were mixed with the  non-EU deficit being better than expected, while the  overall figure missed expectations. Positive Brexit headlines kept the  pound trading higher after David Frost; the lead UK negotiator and Michel Barnier, the lead EU negotiator, met for  informal talks in  London. Irish Minister Simon Coveney was quoted saying that the  UK could get a  limited trade deal from the  EU avoiding tariffs and  quotas.
The  pair rallied higher during the  American session given the  mostly empty US docket as  the  US Dollar Index fell to  a  low of  93.14. The  cable surged higher after Rishi Sunak unveiled another jobs support programme for  UK workers.
The  currency pair’s future performance is likely to  be influenced by  Brexit news and  US dollar dynamics.
The GBP/USD currency pair was trading at 1.300 as at 15:27 GMT having rallied from a low of 1.2921. The GBP/JPY currency pair was trading at 137.40, having risen from a low of 136.80.
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