Bitcoin's price experienced a slight decline, trading around $99,200 on Thursday, despite a 4% rally following the previous day's US Consumer Price Index (CPI) release. Meanwhile, the Pound Sterling encountered selling pressure during Thursday's North American session as the UK's latest economic data fell short of expectations.
The UK's monthly Gross Domestic Product (GDP) data revealed a modest expansion of 0.1% in November, compared to economists' predictions of a 0.2% increase. This follows a similar 0.1% decline in October, highlighting a sluggish recovery. Concurrently, factory activity in the UK showed signs of contraction, adding to the downward pressure on the Pound Sterling.
Traders observed that the GBP/USD pair traded at 1.2241 at the time of writing. The pair had previously edged lower after two consecutive days of gains, trading around 1.2220 during Asian hours on Thursday. With GBP/USD set to close below Tuesday's high of 1.2249, the currency pair faced challenges amid disappointing economic indicators.
The Pound Sterling's decline was further exacerbated by lower-than-expected inflation data from the UK, contributing to heightened selling pressure in the currency market. This economic backdrop created an environment of uncertainty, impacting traders' sentiment regarding the GBP/USD exchange rate.
In light of these developments, traders are advised to keep a close watch on upcoming US Retail Sales data for December, scheduled for release on Thursday. The data holds potential for market volatility and may influence currency dynamics, particularly for the GBP/USD pair.
It is important to note that this article contains forward-looking statements that involve risks and uncertainties. The author and FXStreet are not registered investment advisors, and this article is not intended to serve as investment advice. Traders and investors are encouraged to exercise caution and conduct their own assessments before making financial decisions.