The pound retreats
27.10.2015
On Tuesday afternoon, the GBP/USD pair is trading lower against the publication of mixed data on GDP.
The British Pound fell for the first time in three trading days in tandem with the US dollar. The current quote in the GBP/USD pair is 1.5338.
Today it became known that at the end of the third quarter the growth of the British economy slowed more than was expected. According to preliminary data, GDP for the three months ending in September rose by 0.5% with 0.7% previously. Yearly the economy added 2.3% against growth of 2.4% in the second quarter.
Preliminary GDP data on the situation with the UK means that the second and third edition of this report may differ from the original figures. The thing is that the preliminary calculation uses only half of the data that is needed to obtain a fully objective picture. However, the first annual assessment of the pulse was weak and it is the minimum growth rate of UK GDP for two years.
In the components of the report, however, there are some glimmers of optimism, which ultimately can play in favor of a more confident performance at the publication of the final data on GDP. This is the services sector, which in the third quarter added 0.7%. Even by itself it can "pull up" the economy. The weak link is still the manufacturing and the financial sector, but in September there has been a stabilization of both of them.
Ahead is a difficult day for the pound, like for other traded currencies: today begins a two-day meeting of the US Federal Reserve, and the main motion will happen tomorrow night. Investors are preparing for the volatility.
RoboForex Analytical Department
The British Pound fell for the first time in three trading days in tandem with the US dollar. The current quote in the GBP/USD pair is 1.5338.
Today it became known that at the end of the third quarter the growth of the British economy slowed more than was expected. According to preliminary data, GDP for the three months ending in September rose by 0.5% with 0.7% previously. Yearly the economy added 2.3% against growth of 2.4% in the second quarter.
Preliminary GDP data on the situation with the UK means that the second and third edition of this report may differ from the original figures. The thing is that the preliminary calculation uses only half of the data that is needed to obtain a fully objective picture. However, the first annual assessment of the pulse was weak and it is the minimum growth rate of UK GDP for two years.
In the components of the report, however, there are some glimmers of optimism, which ultimately can play in favor of a more confident performance at the publication of the final data on GDP. This is the services sector, which in the third quarter added 0.7%. Even by itself it can "pull up" the economy. The weak link is still the manufacturing and the financial sector, but in September there has been a stabilization of both of them.
Ahead is a difficult day for the pound, like for other traded currencies: today begins a two-day meeting of the US Federal Reserve, and the main motion will happen tomorrow night. Investors are preparing for the volatility.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.