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    Australia’s employment change exceeds expectations, reporting 42.2K instead of the anticipated 20K

    by VT Markets
    /
    Nov 13, 2025
    The UK’s GDP is expected to grow modestly in the third quarter. The Office for National Statistics will soon release initial figures, predicting a steady annual growth rate of 1.4%. This indicates that the economy might be losing momentum. Understanding these figures is crucial to grasp the current state of the UK’s economy.

    Economic Momentum

    With UK growth holding at 1.4%, this signals that the economy could be slowing down. If confirmed, this trend aligns with the sluggish performance we’ve seen throughout 2025. For traders, it suggests a careful approach to UK-focused investments in the upcoming weeks. In this climate, protective put options on the FTSE 100 index could be a smart choice. As corporate profits are likely to decline due to the slowing economy, buying puts can help shield against a possible drop below the 8,150 support level, which it has tested a couple of times since September. Recent profit warnings in the retail sector increase this downside risk. This slowing growth also affects the British pound. A weaker economy reduces the chances of the Bank of England raising interest rates, especially with inflation recently falling to 2.8%. We are therefore considering strategies that could benefit from a decline in the GBP/USD exchange rate, aiming for a move towards the 1.21 level seen earlier this year.

    Impact on the Bank of England

    The Bank of England’s next decision is now critical, and the market sees a higher chance of a rate cut in early 2026. This GDP data supports that view, making interest rate futures that anticipate lower rates a sensible option. This is a sharp turnaround from the Bank’s aggressive stance in 2024, when growth was stronger. Given this uncertainty, volatility may be the best way to trade this news. The economic outlook is unclear, caught between persistent inflation and slowing growth. This could lead to significant market fluctuations, making long volatility strategies like straddles on major UK stocks a wise consideration before the official GDP release. Create your live VT Markets account and start trading now.

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