UK GDP revised down to 0.2% – GBP follows

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The UK economy grew by only 0.2% q/q in the first quarter of 2017. This is according to the latest estimate, the second out of three. Year over year growth dropped from 2.1% to 2%.

GBP/USD does not seem to react too much. Update: after initially ignoring the news, pound/dollar is down to 1.2958.

The second estimate of UK GDP was expected to confirm the initial read: a growth rate of 0.3% q/q and 2.1% y/y. Quarterly growth

Quarterly growth was quite robust following the EU referendum last June. The economy continued pushing forward at rates of around 0.6% and 0.7%. But, Q1 2017 already saw a sharp slowdown.

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GBP/USD was hugging the 1.30 level ahead of the publication. The horrific attack in Manchester did not have a material impact on the pound.

Brits go to the polls in exactly two weeks. Campaigning has been suspended by all parties following the tragedy. It is expected to resume soon. Over the weekend, polls showed a narrowing gap between Theresa MAy’s Conservatives and Jeremy Corbyn’s Labour.

Resistance awaits at 1.3050, followed by 1.3130. Support awaits at 1.29 and 1.2770. We are currently trading back at the initial post-Brexit range: 1.28 to 1.35. This is up from the second phase: 1.20 to 1.27.

More: Can GBP/USD stay up or has it peaked?

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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