BREAKING: GBP drops after UK GDP miss

UK GDP report as well as industrial production data for October was released today at 7:00 am GMT. Data was expected to show a small, monthly GDP contraction. However, actual report turned out to be much worse than expected, with monthly GDP dropping, quarterly GDP coming in flat and annual GDP growth being slower-than-expected. 

• GDP (monthly): -0.3% MoM vs -0.1% MoM expected (+0.2% MoM previously)
• GDP (quarterly): 0.0% QoQ vs 0.1% QoQ expected (0.0% QoQ previously)
• GDP (annually): 0.3% YoY vs 0.5% YoY expected (1.3% YoY previously)
• Industrial production: -0.8% MoM vs -0.2% MoM expected (0.0% MoM previously)
• Manufacturing production: -1.1% MoM vs -0.1% MoM expected (0.1% MoM previously)

As UK data for October missed expectations across the board, it should not come as a surprise the GBP took a hit. GBPUSD plunged around 0.3% in a knee-jerk move.