No surprises from the UK: the economy grew at a pace of 0.7% q/q in Q3 according to the first read. Year on year, the economy grew 3%, also as expected.
GBP/USD is moving up a bit, as a sort of “relief rally”.
More: construction numbers look somewhat underwhelming and the index of services is also not that amazing. However, both the quarterly and yearly numbers are good.
The United Kingdom was expected to report a growth rate of 0.7% quarter over quarter in the initial read for Q3, or 3% year over year. The final read for Q2 was a growth rate of 0.9%.
GBP/USD traded around 1.6030 towards the publication.
Britain has enjoyed strong growth for over a year but recent signs are somewhat worrying: retail sales figures disappointed and some PMIs are off the top. More importantly, wages and inflation are subdued.
Expectations for a rate hike have been pushed back from the spring of 2015 towards the summer.
Support awaits at 1.60, followed by 1.5910 and 1.5850. Resistance awaits at 1.6075 and 1.6150. For more, see the British pound forecast.
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