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UK GDP confirmed at 0.7% for Q4 – GBP/USD rises in range

The UK grew by 0.7% in Q4 2013 also according to the second release of GDP. No change was expected from the first release of GDP, which showed a growth rate of 0.7% for the UK in Q4 2013. A third and final release is still pending. Year over year, there was a small downgrade from +2.8% to +2.7%.

GBP/USD was trading at around 1.6675 before the publication, steady within its range. The immediate reaction was a move above 1.67, but this wasn’t sustained.

At the same time, the UK released the initial business investment number for Q4 2013. It was expected to rise by 2.6% after 2% in Q3. This disappointed with a rise of 2.4%, less than 2.6% expected.

The higher expectations for a rate hike help boost the pound, which attempts to regain the highs.

While the central bank signaled a rate hike in Q2 2015, recent data was disappointing, especially the rise in the unemployment rate and the drop in inflation.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.