Slightly worse than expected figures from the UK. While the economy still grew by 0.3% q/q, the final read for Q2 shows a lower annual growth rate at 1.5%. The current account is also quite disappointing: no less than 23.182 billion, far worse than 16 billion. This comes on top of a downward revision.
On the brighter side, consumer credit is up to 1.583 and mortgage lending tops 4 billion. However, the number of mortgage approvals drops to 66.58 billion.
GBP/USD is slipping off the 1.34 handle in the aftermath, hitting a new low of 1.3381. This is not good news, to say the least.
Here is the chart showing the downfall.
The final read for UK GDP growth was expected to confirm the previous estimations: 0.3% q/q and 1.7% y/y. Britain’s current account deficit was predicted to narrow from 16.895 billion to around 16 billion this time. Consumer credit carried expectations for a level of 1.355 billion, up from 1.179 billion. Mortgage approvals were expected to stand at 68K and mortgage lending at 3.6 billion.
GBP/USD was trading just above 1.34 ahead of this big bulk of publication. Resistance awaits at 1.3455, yesterday’s high. Support is at 1.3370.
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