UK Pound Extends Weakness To Fresh Three-Month Low Amid Worsening Data

Published on Sep 13, 2023 12:40

Worsening economic data from the UK is adding pressure on the pound that refreshed three month low against the dollar, falling further below $1.25 mark on Wednesday. Data showed sharp decline in industrial activity since August 2022. Industrial production in the UK fell 0.7% month-on-month in July, falling from an over two and a half year high of 1.8% rise in June and compared to market expectations of a 0.6% drop. On a yearly basis, industrial activity grew 0.4%, slowing from a prior 0.7% but marking the second month of growth after over one and a half years of successive contractions. Meanwhile, British economy shrank 0.5% month-over-month in July 2023, the biggest decline so far this year and reversing a 0.5% growth in June. GBPUSD fell in immediate reaction to the data and is currently quoting at $1.2450, down 0.3% on the day. Besides, US dollar index hovering close to six month high awaiting crucial US inflation data is also keeping pound under pressure. On the NSE, GBPINR September futures are down 0.15% on the day at 103.33. The pair gave back early day gains and dropped into negative terrain post data.