UK POUND TUMBLES ON WEAKER THAN EXPECTED GROWTH DATA; GBPINR FALTERS BY OVER 0.3%

Published on Dec 13, 2023 14:47

UK pound fell sharply on Wednesday following weaker than expected data as interest rate hikes are playing out to bring down inflation. The latest data from the Office for National Statistics on Wednesday showed that UK Gross Domestic Product (GDP) contracted by 0.3% on a monthly basis in October, worse than the 0.1% decline expected and from a 0.2% expansion in September. Meanwhile, Industrial Production data for October also came in worse than market expectations, falling by 0.8% on month. Manufacturing production fell by 1.1% on a monthly basis and versus a 0.1% rise in the previous reading. GBPUSD tumbled by 0.27% to $1.2530 following the data. Focus now shifts to US FOMC outcome following inflation data that remained somewhat moderate. On the NSE, GBPINR slumped sharply lower to 104.51, down 0.32% on the day.