GDP in Q1 2013 was expected to remain unchanged in the third and final revision of GDP, and stand at 0.3% and that’s exactly what happened. However, the year-on-year figure was revised to the downside: from a rise of 0.6% to only 0.3% – half. And, the current account deficit for Q1 was predicted to squeeze from 13.6 billion pounds (revised from 14 billion initially reported) to 10.9 billion but it actually printed 14.5 billion. The wider deficit weighs on the pound.
GBP/USD remained in low ground towards the publication, trading at around 1.5320. It is now falling below 1.53, to a new post-Bernanke low.
Update: it fell as low as 1.5263 so far.
Business investment was expected to remain unchanged at a drop of 0.4%. It also disappointed with a drop of 1.9%.
The pound remained relatively strong in recent months, riding on some positive figures and withstanding periods of a stronger dollar. However, this week seems different, with the loss of 1.54 and now with the loss of 1.53. Cable is now at the lowest since June 5th, when it was surging towards 1.57.
The next significant support line stands at the round number of 1.52.
For more on the pound, see the GBP/USD forecast.
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