GBP/USD: Strong UK data fails to lift Pound – Societe Generale

Societe Generale’s Kenneth Broux notes that robust UK GDP and services growth are keeping pressure on the Bank of England (BoE) to hike again, with OIS implying three more moves. Despite this, GBP/USD has reversed sharply. Upcoming CPI and wage data will be key for rate expectations and Pound direction.

Pound retreats despite growth surprise

"GBP/USD: 1.3221 - 1.3242 overnight range. Cable finds support on the lows above 1.3220 as selling takes a breather following 1.7% drop from Tuesday’s pre-US CPI high. Support 1.3140, resistance 1.3310."

"CPI and wage data next week. EUR/GBP support 0.8320."

"3Q GDP growth of 0.7% surpassed the BoE estimate of 0.4% and keeps pressure on the bank to raise interest rates for a second time in December or February."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)