Key points:

• British economy grows by 0 in November.3%, more than expected。
• Services sector a major contributor to growth in mid-Q4 2023。
• Later in the day, investors "focus will turn to U.S. producer prices and the Federal Reserve.。

UK Gross Domestic Product (GDP)

British economy in focus Friday。November's gross domestic product (GDP), industrial and manufacturing output piqued investor interest。

It contracted by 0 in October..After 3%, the UK economy grew by 0% in November..3%。However, the 3-month GDP average shows that the UK economy contracted by 0% in the three months to the end of October..2%。Economists expect UK economy to grow 0 in November.2%, a contraction of 0 in the three months to the end of November.1%。

According to the Office for National Statistics,

Services output falls 0 in October.After 1% growth of 0.4%。Services sector a major contributor to November growth。Notably, the output of customer-facing services grew by 0.6%。However, in the three months to the end of November, there was no growth in the service sector.。Production output increased by 0.3%, driven by manufacturing output。Industrial output falls 0 in October.8%。Manufacturing output fell 1 in October.After 1% growth of 0.4%。However, output in the construction sector fell by 0.2%。Bad weather reportedly affects planned work。Bank of England monetary policy implications

A bigger-than-expected three-month average contraction could get the Bank of England talking about a rate cut。However, improved UK services conditions may be a factor to consider。Nonetheless, the services sector did not grow in the three months to the end of November, and there is uncertainty about the outlook for the UK economy.。

GBP / USD response to UK GDP estimates

GBP / USD at 1 before UK data.$27,493 low climbs back to 1.High of $27,844。

However, in response to the UK GDP data, GBP / USD at 1.$27,767 high falls back to 1.A low of $27,630。

On Friday, GBP / USD rose 0.03%, to 1.27,642 USD。

A Review of U.S. Producer Prices and the Federal Reserve

On Friday, U.S. producer prices for December will draw investor interest。The apparent rise in producer prices could test bets on a March Federal Reserve rate cut following an unexpectedly higher U.S. CPI report。Producer prices are a leading indicator of consumer price inflation。

Economists expect producer prices and core producer prices to increase by 0.1% and 0.2%。Producer prices and core producer prices stagnated in November。

With inflation in the spotlight, comments from FOMC members also need to be taken into account。FOMC member Neil Kashkari to speak on Friday。Reaction to Inflation Data Will Concern Investors。