The pound declined against its major rivals in European deals on Tuesday, after data showed that U.K. economic growth eased more-than-expected in the third quarter, triggering hopes that the Bank of England is likely to keep interest rates on hold for longer.
Preliminary estimates from the Office for National Statistics showed that gross domestic product rose 0.5 percent from the second quarter, when it grew 0.7 percent. Economists were looking for 0.6 percent economic expansion.
Year-on-year, GDP increased 2.3 percent in the third quarter, which was slightly less than the 2.4 percent gain economists had expected.
Separately, the ONS said the index of services remained unchanged in August from July, when it climbed 0.2 percent. Economists had expected a 0.2 percent increase.
In the three months to August, the index of services rose 0.9 percent from the previous three months, which was slightly less than the 1 percent gain economists had expected.
European markets are lower, amid decline in commodities, and investors cautiously await central bank meetings in the United States and Japan this week.
The pound has been lower against the franc, yen and the euro in Asian deals. Against the U.S. dollar, it held steady.
The pound depreciated to 184.30 against the Japanese yen, its lowest since October 19, and a 0.87 percent decline from a high of 185.91 hit at 5:00 pm ET. The pound may possibly find support around the 182.5 level.
The pound fell to near a 2-week low of 1.5301 against the greenback and a 4-day low of 0.7211 against the euro, reversing from its prior highs of 1.5359 and 0.7191, respectively. Continuation of the pound’s downtrend may take it to support levels of around 1.52 against the greenback and 0.73 against the euro.
Pulling away from an early high of 1.5103 against the franc, the pound edged down to 1.5051. The pound is seen finding support around the 1.49 mark.
Survey data from the investment bank UBS showed that Switzerland’s consumption grew modestly in September, led by the marginal increase in new vehicle registrations despite the more pessimistic mood in the retail sector.
The UBS Consumption Indicator edged up to 1.65 points from 1.64 in August, which was revised up from 1.63.
Looking ahead, U.S. durable goods orders for September, S&P/Case-Shiller U.S. home price index for August and Markit’s preliminary U.S service sector PMI report, U.S. consumer confidence index and U.S. Richmond manufacturing index, all for October, are slated for release in the New York session.
At 1:00 pm ET, Bank of Canada Deputy Governor Tim Lane will give a speech in Halifax on the topic “Inflation Targeting – A Matter of Time.”
The material has been provided by InstaForex Company – www.instaforex.com