GBP/USD, USD/JPY flows - UK GDP remains robust, dollar testing into some levels now

UK GDP comes in as expected at the still robust 0.7% pace, no surprise but maintaining the resilience previously unexpected this deep into the year. This reflected in BoE upgrades and indicative of the fact that even outside the US, majors are not immune to some of the recent offset from AI.

Sep alone also maintains a better pace at 0.2% in the month, with services 0.2%, IP 0.3% and even construction bouncing, 0.8%, with Sep y/y up to 2.1%.

While at the margin supportive, no real impact with dollar-driven trade dominating. Cable slowing a little into 1.3250 congestion with 1.32 figure below if the broader dollar move extends, though later running into some natural breather levels on many pairs now, including 160 on USD/JPY where intervention threats have been voiced again (Mimura – too rapid) for the first time in a while.