On Tuesday morning, GBPUSD is consolidating after updating three weeks low yesterday.
The British Pound is reached stability against the USD on Tuesday after falling the day before. The current quote for the instrument is 1.2989.
Yesterday, the United Kingdom reported on the Industrial Production, which lost 1.2% m/m in November after adding 0.4% m/m in October. The Manufacturing Production showed -1.7% m/m over the same period of time after being +0.5% m/m the month before.
On the other hand, the Construction Output improved by 1.9% m/m after plummeting by 2.2% m/m in the previous month.
The British GDP lost 0.3% m/m in November after adding 0.1% m/m in October, although it wasn’t expected to change. This was the slowest growth rate of the British economy over 7 years and that should be alerting.
Of course, both manufacturers and consumers were facing political and financial uncertainty at that time. No one knew whether Boris Johnson would be able to pass all necessary for the Brexit documents through the British Parliament. Yesterday’s numbers are a very clear description of how nervous both sides of the country’s economy were at that time.
By the way, yesterday Johnson said that the United Kingdom and the European Union would surely have a tariff agreement, which might help both parties to trade with zero tariffs without any quota issues. Little has been done in this direction so far, but the parties have enough time for agreeing on that during the transition period.
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