December 23, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A.
The British pound held steady despite mixed economic data, which pointed to ongoing challenges in the UK economy. GDP growth for Q3 was revised down to 0%, indicating stagnation in economic activity. The services sector, which is crucial to the UK economy, remained flat, while construction saw a 0.7% increase, and production contracted by 0.4%. However, a 1.9% rise in business investment may provide some support for the currency.
Trade data further clouded the outlook for the pound. The UK’s current account deficit narrowed by GBP 5.9 billion to GBP 18.1 billion in Q3. While the overall trade deficit for goods and services showed slight improvement, weak exports contributed to a bearish sentiment surrounding the currency.
In the bond market, the UK 10-year bonds yield remained near the 4.6% level after declining from a multi-month peak, reflecting cautious investor sentiment. Further pressure on bonds could arise if PMI data fails to show growth in the manufacturing sector.
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