The British pound halted the four-day rally and pared gains from the previous week to reach a low of 1.6521 against the greenback, and the GBP/USD may continue to retrace the September advance as the economic outlook for the U.K. remains weak.
Talking Points
· Japanese Yen: Appreciates as Risk Appetite Tapers
· Pound: U.K. Economic Outlook Deteriorates
· Euro: Industrial Outputs, Employment Falter
· US Dollar: Fed Officials to Speak on Financial Regulation, Economy
The British pound halted the four-day rally and pared gains from the previous week to reach a low of 1.6521 against the greenback, and the GBP/USD may continue to retrace the September advance as the economic outlook for the U.K. remains weak. The European Commission anticipates economic activity to expand 0.2% in the third quarter but forecasts the economic recovery to remain weak following the slump in private sector spending, and projects GDP to expand 0.5% in the final three-months of the year. Moreover, the EU expects the annual rate of growth to fall 4.3% from the previous year amid an initial forecast for a 3.8% drop in GDP, and the downturn in the labor market may continue to weigh on economic activity going forward as businesses continue to scale back on production and employment in an effort to weather the downturn in global trade.
