- 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.
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.