Getting used to GBP's weakness. Overview for 10.11.2023

The British pound sterling has extended the wave of decline against the US dollar even further. The current GBPUSD exchange rate stands at 1.2222.

The pound is declining after dovish comments made by several monetary policymakers in the UK. All market attention is somehow tied to interest rate forecasts, which remain too uncertain.

Today, the UK will take the spotlight in the macroeconomic calendar, presenting a significant flow of statistics. Specifically, the Q3 GDP assessment is due. The economy is expected to have contracted by 0.1% q/q. Considering all the available data, this is within the normal range – unless the economy shrinks further. On a monthly basis, the UK economy might show no growth after a previous increase of 0.2%. The volume of industrial production could have decreased by 0.1% m/m following a 0.7% drop due to high lending costs.

On 15 November, the UK will release vital inflation statistics – prompting the pound to react once again.