UK Data Misses Drive Market Caution

The British pound came under pressure after a series of UK data releases fell short of expectations, indirectly offering some temporary support to the DXY.

Monthly GDP slipped -0.1% against a forecast of 0.0%, while industrial production recorded a sharp -2.0% decline compared with the expected -0.5%. Manufacturing production also dropped -1.7%, underperforming both the forecast and previous readings.

Only quarterly GDP provided a small positive surprise at 0.1%. These softer numbers weighed on overall risk sentiment and reinforced concerns about slowing UK economic momentum. Eurozone industrial production also disappointed at 0.2%, well below the 0.7% forecast, further pressuring European currencies.

Several Federal Reserve officials, including Collins, Daly, Musalem, Kashkari, and Hammack, delivered remarks throughout the day, but none endorsed immediate policy easing.

Their tone remained data-dependent, signaling that the central bank needs clearer visibility before adjusting rates. This kept rate-cut expectations anchored for early 2026 and provided little directional support for the dollar.

Meanwhile, US Crude Oil Inventories rose 6.4M versus a 1.0M forecast, hinting at softer demand and contributing to broader market caution.