The British pound did not react well to the GDP data
22.05.2014
On Thursday afternoon the GBP/USD pair declines after the release of statistics on the country's GDP and data on government borrowing.
The British Pound is trading down this Thursday afternoon after the release of generally smooth statistics on the UK GDP for the first quarter of 2014. Statistics showed that the British economy expanded by 0.8% q/q, meaning that the figure has not changed from the previous estimate. In the previous quarter the indicator grew by 0.7% q/q. In year on year the UK GDP rose by 3.1%, which also coincided with the preliminary calculations.
The components in the report show that the production parameters in England increased by 0.7% (lower than the first figure of 0.8%). At the same time, the volume of construction increased by 0.6% (the first estimate was 0.3%).
Among the positive aspects - business investment grew by 2.7% (32.8 billion pounds).
It is likely that for GBP/USD it was important to see a statement of already known facts - all reasons for buying are exhausted, it's time for adjustment. In this growing wave the instrument has reached a local maximum of just above 1.69, although it failed to resume the peaks of about 1.6990.
It is possible that after a brief pullback GBP/USD will return to a growth phase.
RoboForex Analytical Department
The British Pound is trading down this Thursday afternoon after the release of generally smooth statistics on the UK GDP for the first quarter of 2014. Statistics showed that the British economy expanded by 0.8% q/q, meaning that the figure has not changed from the previous estimate. In the previous quarter the indicator grew by 0.7% q/q. In year on year the UK GDP rose by 3.1%, which also coincided with the preliminary calculations.
The components in the report show that the production parameters in England increased by 0.7% (lower than the first figure of 0.8%). At the same time, the volume of construction increased by 0.6% (the first estimate was 0.3%).
Among the positive aspects - business investment grew by 2.7% (32.8 billion pounds).
It is likely that for GBP/USD it was important to see a statement of already known facts - all reasons for buying are exhausted, it's time for adjustment. In this growing wave the instrument has reached a local maximum of just above 1.69, although it failed to resume the peaks of about 1.6990.
It is possible that after a brief pullback GBP/USD will return to a growth phase.
RoboForex Analytical Department
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