The Pound got a chance to recover. Overview for 12.11.2019

Lacking any external news, GBPUSD is slowly correcting after falling earlier. 

Last week, the British Pound weakened enough to get a chance for a correction now. the current quote for the instrument is 1.2862.

These couple of days the United Kingdom is very active in publishing macroeconomic statistics. Not to say all reports are very important, but some of them may be considered quite interesting. For example, the British GDP is looking alive and healthy in the third quarter: the revised report showed +0.3% q/q after  0.2% q/q in the previous quarter, which is an excellent piece of news. To be more specific, in September the indicator lost 0.1% m/m, the same as expected, while in August it showed -0.2% m/m. 

The Industrial Production was -0.3% m/m in September after losing 0.7% m/m in the previous month. The indicator was expected to fall, but only by 0.1%. However, the actual reading is also not too bad given the economic turbulence in the country. The Manufacturing Production dropped by 0.4% m/m after losing 0.7% m/m the month before. 

So, this is what we see: companies, in hopes of settlement of the Brexit deal in the nearest future (later, we may find out that it’s not going to happen), became more active and customers “returned the compliment”. The October reading will probably be weaker, because by that time investors may understand that miracles don’t happen and the Brexit is extended once again. 

Today, the UK is scheduled to report on the employment market in September, which may also be very interesting. Most likely, September readings on the Unemployment Rate and the Average Earnings Index won’t change a lot, but if they do, investors will have something, bad or good, to respond to.