European session review: GBP mixed following UK's GDP data for November

GBP traded mixed against its major counterparts in the European session on Friday after official data showed that the UK's economy contracted less than expected in November despite the introduction of a second national lockdown for England on November 5. The pound rose slightly against AUD, NZD and CAD, but fell against EUR and safe-haven currencies.

The Office for National Statistics (ONS) reported Britain's GDP shrank by 2.6 percent m-o-m in November following six consecutive monthly gains due to the imposition of tougher coronavirus restrictions in England at the beginning of the month to help control the spread of the virus. Economists had forecast a 5.7 percent m-o-m slump. On a y-o-y basis, the UK's economy contracted by 8.9 percent, the most since July. Over the three months to November, the UK's GDP expanded by 4.1 percent y-o-y, the least since the economic recovery started in the June-August period. However, this was better than economists' forecast of a 3.4 percent y-o-y growth. 

Meanwhile, investors' risk appetite was dented by concerns for the pace of coronavirus infections around the world and worries that the lockdowns could be extended. According to Johns Hopkins University's data, global COVID-19 cases have exceeded 93.2 million, with the death toll approaching 2 million, 86,163 of which have been registered in the UK.