UK Final GDP arrives at 0.0% QoQ in Q4, meets estimates – Cable unfazed

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  • UK Final Q4 GDP meets expectations across the time horizon.
  • GBP/USD consolidates the recovery gains near 1.2350.

The UK GDP second estimate revealed that the economy showed no growth, arriving at 0.0% QoQ in the fourth quarter of 2019 vs. 0.0% seen in the first readout while meeting the consensus forecasts of 0.0%.

While on an annualized basis, the UK economy’s growth rate arrived at 1.1% in Q4, matching the expectations of +1.1% and up from +1.1% previous reading.

Separately, the UK Total Business Investment data arrived at -0.5% QoQ in Q4 while at 1.8% YoY for the same period. The annualized figure surprised markets to the upside.  

Meanwhile, the UK Q4 Current Account deficit narrowed to GBP 5.6  billion vs. GBP -7.00 billion expected and GBP -15.86 billion last.

GBP/USD reaction

The pound shows little reaction to the mixed UK data dump, as GBP/USD keeps its recovery momentum intact around 1.2350 following an early dip to 1.2244.     

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