China’s Q3 GDP growth landed disappointedly at 4.9%, US factory production fell due to microchip shortage, BoE likely to raise interest rates next month

GBPUSD is on the rise, currently trading at 1.3747, up about 0.16% in the session. The pair has been primarily affected by the hawkish talk from the BoE, which said that it might raise interest rates in November. Another factor that has also been affecting the pair is the weakening USD. Production in September at US factories fell by the most in the past 7 months. Hurricane Ida has greatly disrupted output at mines, while the global shortages of microchips have forced automakers to cut their car production. DXY Index is trading lower today, down by 0.1%.

Data from Beijing showed that China’s GDP slowed down to only 4.9% in Q3. Just recently, the Delta variant forced the country into its most aggressive lockdown since 2020, which has severely impacted production. People’s Bank of China commented that the risks were manageable, but investors are still feeling uneased, especially considering the ongoing credit crisis in the real estate sector.