GBP/USD Weakens Despite Steady U.K. GDP Numbers

UK3The GBP/USD was under pressure on Friday after buyers failed to materialize after the release of U.K. QE GDP. The report showed GDP was 2.3% year-over-year, meeting expectations. GDP for the quarter came in at 0.5%, also meeting expectations. The selling drove the Sterling to 1.5030, just slightly above the November 6 bottom at 1.5026.

U.K. stocks also fell on Friday as investors were encouraged to sell because of a sharp drop in Chinese equities. The steep break came after the Chinese regulator said it is investigating two major Chinese brokerage firms over suspected violations of securities rules.

The EUR/USD inched through $1.06 on Friday as investors geared up for the possibility of further cuts in Euro Zone interest rates next week. The European Central Bank is also considering other options including whether to stagger charges on banks hoarding cash. A consensus of traders believes the central bank will extend asset purchases and lower interest rates. The selling pressure was strong enough to put the Forex pair in a position to challenge its April bottom at $1.0520.

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John Valley
John S. Valley is the founder of The FX Academy, a lean and very mean financial planning and investment advisory firm that advises clients with portfolios ranging from $10,000 to over $50 million. The author of "Beating Wallstreet", Valley advises wealthy individuals on how to invest their money, as well as courses on behavioral finance at dozens of elite institutes. His articles and reviews on Binary Options Listings give valuable insights into the world of stocks, binary options & forex.

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