Mixed data: UK GDP growth for Q2 was surprisingly revised to the upside, to 0.9%, while y/y it remained unchanged at 3.2%. However, the current account deficit soared to 23.1 billion pounds.
GBP/USD is ticking higher after the publication, but certainly not going anywhere fast. Update: after the initial rise, GBP/USD is turning lower and trading at 1.6250.
The UK was expected to report a current account deficit of 16.9 billion in Q2 2014, lower than 18.5 billion originally reported for Q1. GDP growth was expected to be confirmed at +0.8% in the third and final release.
GBP/USD traded around 1.6262 towards the publication.
More data: the Index of Services was expected to rise by 1% and came out as expected. Revised business investment to be downgraded to 4% after 5% originally reported, but it was downgraded all the way to 3.3%.
Since the dust from the Scottish Referendum faded away, the pound still suffered from the strength of the US dollar, but held on quite well against other currencies.
Some support awaits at 1.6230, with 1.63 working as resistance. For more, see the GBPUSD prediction.
Tomorrow, in the wake of the new quarter, we have fresh purchasing managers’ indices that are set to rock the pound. The BOE convenes only next week.
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