A slew of bad data only managed to momentarily curb this morning’s Pound Sterling (GBP) appreciation, with the headline being an unexpected drop in GDP. The Euro (EUR) has been pushed lower by a slowdown in French economic growth, while the US Dollar (USD) is trending gradually lower as traders pause ahead of key data due out later today. GBP/EUR Exchange Rate Forecast: Pound Sterling Holds onto Gains Following UK Growth Shock After dropping from 1.3719 at the start of the week to a ten-week low of 1.3492, Pound Sterling’s recovery has been mostly unharmed by a slew of poor data releases. The final third-quarter figure for UK GDP was revised down from 2.3% to 2.1% year-on-year (YoY), despite predictions that it would hold steady. Second quarter GDP was also revised down to 0.5% after being estimated at 0.7% earlier in the year. Quarterly GDP slowed from 0.5% to 0.4%. More bad news, including a greater-than-expected slump in the Index of Services from 0.5% to 0.1% in October and a 10 point drop in the Lloyds Business Barometer to 45, has yet to drag on Pound Sterling’s appreciation. Total Business Investment also dropped from 6.6% to 5.8%. Pound Sterling is managing to extend its gains against the Euro, continuing to trend up 0.4% after earlier news that French GDP slipped from 1.2% to 1.1%, defying predictions that it would remain steady.

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