No Change in British GDP in Q3

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According to the first revision of British GDP, the British economy still grew by 0.5% in Q3. Early expectations stood on no change to the initial estimate, so there´s no surprise here.

Another figure published at the same time disappointed: business investment dropped by 1.4% in Q3. A drop of 0.5% was expected. It’s important to note that upwards revisions have usually been seen with this indicator.

The Index of Services rose by 0.6%, double the early expectations for a rise of 0.3%, but this is a minor figure.

GBP-USD is trading around 1.5550 following this release, not much changed. Weak support is found at 1.5530, with more significant support at 1.5480. Above, resistance appears at 1.5630.

For more on the pound, see the GBP/USD forecast.

The pound dropped after an escalation in the European debt crisis. Germany failed to cover a bond auction yesterday, and worries certainly grew. This pushed money to the safety of the US dollar.

On the other hand, this auction sent investors from German bunds to British gilts, supporting the pound, especially against the euro.

Later, Britain will release the CBI Industrial Order Expectations, which are predicted to drop from -18 to -19, deep in negative territory.

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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 the 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.

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