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UK GDP meets expectations – GBP/USD unexcited

The UK economy grew 0.5% q/q in the  third quarter as expected. Year over year, the level was 2.3%. Both unchanged and as expected.

Nevertheless, GBP/USD fell before the release to a new low of 1.5054 before bouncing back up on the actual number, but still looks somewhat depressed.

Among the details, private consumption is up to 0.8% from 0.7% originally  reported and business investment is up as well  to 2.2%. These details  look good. The downside comes from higher imports.

In general, the UK economy is growing nicely with strong retail sales, higher wages (3% y/y) and positive growth figures. The  pessimism of the BOE regarding inflation seems unjustified or somewhat  short-sighted.

Perhaps the  disappointment comes from a weaker than expected rise in the Index of Services: 0.7% vs. 0.8% predicted, but this is not the top tier indicator here.

The fall of the pound

Further support awaits at the round level of 1.50. Resistance is at 1.515.

GBPUSD November 27 2015

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.