GBP/USD may well break below the 1.2500 gravity level – ING

GBP/USD has plummeted following disappointing GDP data from the UK. Economists at ING analyze the pair’s outlook.

Soft GDP figures not key for the BoE

UK monthly GDP for October came in weaker than expected at -0.3% MoM.

The October figures mean that we are on track for a marginally negative 4Q GDP print in the UK, although that is not at the top of the Bank of England’s concerns at the moment. We still expect a hawkish tone on Thursday to give some help to Sterling, especially in the crosses. 

Today, GBP/USD may well break below the 1.2500 gravity level.