Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The GBP/USD pair dropped from around 1.1600 after hitting six-week highs at 1.1645 due to overall US Dollar strength on the back of the positive Thursday’s US data showing the economy’s resilience, despite the ongoing monetary policy tightening. US Jobless Claims added to the already positive mood, though Goods Orders disappointed.
The ECB’s monetary policy decisions were a tailwind for the US dollar and weighed on the Pound Sterling. The GBP/USD is trading at 1.1581, below its opening price by 0.36 percent.
A risk-on impulse was no excuse for the US Dollar to appreciate against the Sterling. The US Bureau of Economic Analysis revealed the growth figures for the third quarter, showing that the economy is growing at a faster rate than estimated, at 2.6%, vs. 2.4%, foreseen by a Reuters poll. Additionally, the US Department of Labor revealed that Unemployment claims for the week ending on October 22 rose by 217K, less than estimates of 220K, though more than the previous week, flashing that the labor market is easing.
The fall in Durable Good orders increasing by just 0.4% MoM, less than the 0.6% increase estimated for September, disappointed market participants. Excluding transportation, new orders shrank b 0.5%, below the previous month’s reading.
Following the release of US economic data and the European Central Bank (ECB) policy decision, the GBP/]USD resumed its slide below 1.1600. Nevertheless, the appointment of the UK’s new Primer Minister, Rishi Sunak, stalled the downfall and kept the pair’s weekly gains at around 2.50%.
