In the third quarter, the GDP of the United Kingdom decreased to 0%, but when compared on an annual basis, the GDP still grows at 0.6%. This is considered a positive sign and helps support the strengthening of the GBP.

This GDP information may enable the UK to avoid an economic downturn that could occur in 2023. However, the UK still faces the risk of increased inflation, and the current rising unemployment rate may hinder GDP growth.

Jerome Powell, the Chairman of the United States Federal Reserve (Fed), expressed concerns on Thursday, indicating that the current policies may not be sufficient to control inflation to the target of 2%.

Investors continue to monitor economic data from the UK, such as employment and inflation data, scheduled to be announced on Tuesday. At the same time, investors are also keeping an eye on the inflation rate in the United States on the same day.