Events to watch out for today:
09:00 EET. GBP – GDP Volume Change
15:30 EET. USD – Retail Sales
GBPUSD:
GBP/USD declines to 1.2675, the lowest level since August, during Asian trading on Friday. Cautious remarks from Federal Reserve (Fed) Chairman Jerome Powell on Thursday and stronger US economic data are helping to strengthen the US Dollar (USD) in general and put pressure on the major pair. Traders are awaiting preliminary UK third quarter (Q3) gross domestic product (GDP) data due later in the day.
Producer Price Index (PPI) inflation data came out roughly in line with expectations, despite a slight increase in the annualized reading of the core PPI. The core PPI matched forecasts in October, rising 0.2% month-over-month, up from the previous month’s revised 0.1% reading. The core producer price index for the year to October accelerated more than expected, rising to 3.1% from an expected 3.0% and above the previous period’s 2.9%, which was also revised upwards from 2.8%.
UK third-quarter GDP is expected to decline to 0.2% QoQ from 0.5% in the previous quarter. US retail sales are also forecast to decline slightly in October, with the monthly figure expected to come in at 0.3%, down from September’s 0.4%.
Trading recommendation: Trade mainly with Sell orders from the current price level.
Origin: FreshForex
