Both the euro and the pound sterling continue losing value. The fall is not as fast as it was yesterday after the publication of the US inflation figures. The slowdown could be explained by the celebration of Veterans Day in the US today .
The pound sterling turned out to be under the pressure from the UK GDP data that is not very encouraging. The preliminary estimate for the third quarter unveiled that economic growth slackened to 6.6% from 23.6%. In fact, the data exceeds the expected reading of 6.5%. Some analysts had foreseen a more positive figure of 6.8%. Nevertheless, the UK’s economic growth became significantly slower. In the eurozone and the US, the situation is really better.
In addition, the UK published an extremely disappointing report on its industrial production.
Thus, the UK industrial production showed a smaller rise of 2.9% compared to an increase of 4.0% in the previous period. In fact, these figures have a greater influence on the pound sterling than the GDP data. Other currencies, including the euro, followed the British pound and began falling. That is why the US dollar is actively climbing.
Let us take a look at the trading charts.
The euro lost more than 110 pips against the US dollar, thus causing an inertial movement in the market. As a result, the downtrend that began in early June was prolonged and the price hit the levels logged in July 2020.
The reading of 1.1450 is acting as an intermediate support level, reaching which the pair stagnated. It is quite possible that a high oversold level of the euro will negatively affect the volume of short positions. However, if the price fixes below 1.1450, traders are likely to receive a sell signal.
Meanwhile, the pound/dollar pair slid even more than its counterpart did. Yesterday, the British pound lost over 150 pips and broke the support level of 1.3400. If the price fixes below the control level of 1.3400, it is highly likely to drop to 1.3250. Otherwise, we will see a technical rebound.

00:00 Euro and pound are losing ground
00:22 UK GDP
01:10 UK Initial Production
01:39 EUR / USD
02:28 GBP / USD


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