Pound loses momentum against dollar on poor UK GDP data; GBP/INR futures race ahead of 121 mark

The British pound is witnessing a pullback from one and half month high against the dollar on Friday amid shrinking UK economic activity. The GDP report showed that the economic growth contracted again by 0.1%, missing expectations of a 0.1% expansion. Continued weakness in growth is likely to induce BOE interest rate cuts, adding pressure on the counter. Further data showed, industrial production contracted by 0.8% against expectations of -1.2% and the prior reading of -2.5%. Meanwhile, manufacturing production came in lower at 0.5% against estimates of 1%, following a 1.7% decline in September. GBP/USD is currently quoting at $1.3374, down 0.10% on the day. Meanwhile, a slew of data lined up for next week including CPI and PMI will be watched for further cues. On the NSE, GBP/INR futures is racing ahead of 121 mark.

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