The UK economy grew 0.5% q/q in the last quarter of 2014, also according to the second release. Y/y remains 2.7%. Total business investment rose 2.1% y/y but dropped 1.4% q/q, much worse than expected. The Index of Services rose 0.8%, somewhat better than predicted.
GBP/USD is stable around 1.15525. The headline “as expected” result in the most important figure is OK.
Exports rose 3.5% and imports rose 1.3%. Private consumption rose 0.5%. The components of growth have changed, but the overall picture remains of continued growth and goes in line with Carney’s bullishness.
The United Kingom was expected to confirm the 0.5% q/q growth rate in the second release of GDP for Q4 2014. Business investment was expected to rise by 2% in the preliminary report, after 1.4% beforehand.
Cable traded around 1.5520 just before the publication.
GBP/USD and the pound in general have been enjoying gains in recent days. The high so far has been 1.5550.
EUR/GBP is basically setting new cycle lows on a daily basis and is also bullish against the yen.
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