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28 Jan 2014
GBP/USD: UK GDP meets consensus with strongest growth in Europe
FXstreet.com (London) - The UK economy grew by 0.7 percent in fourth quarter of 2013, bringing annual growth rate to 1.9 percent, according to data from the Office for National Statistics.
Gains despite recent softer data
The gains were slightly below the second quarter growth of 0.7 percent, but printed at expectations despite some risk to the downside after softer than expected manufacturing activity and industrial output numbers earlier this month. Manufacturing activity and broader industrial output were both flat in November, while construction activity fell 4 percent.
Robust UK growth
The 1.9 percent GDP gains places the UK as Europe’s strongest major economy, and follows the International Monetary Fund’s upgrade of its 2014 outlook for the UK, from 1.9 per cent to 2.4 per cent growth, placing it second only to the US.
GBP/USD is trading at USD1.6587, with the GBP-positive news counterbalanced by expectations that the Federal Reserve will give a bullish assessment of the US economy when it concludes its two-day FOMC meeting tomorrow. The pair fell to USD1.6566 on misplaced bets of a GDP miss immediately preceding the release before recovering immediately.
Gains despite recent softer data
The gains were slightly below the second quarter growth of 0.7 percent, but printed at expectations despite some risk to the downside after softer than expected manufacturing activity and industrial output numbers earlier this month. Manufacturing activity and broader industrial output were both flat in November, while construction activity fell 4 percent.
Robust UK growth
The 1.9 percent GDP gains places the UK as Europe’s strongest major economy, and follows the International Monetary Fund’s upgrade of its 2014 outlook for the UK, from 1.9 per cent to 2.4 per cent growth, placing it second only to the US.
GBP/USD is trading at USD1.6587, with the GBP-positive news counterbalanced by expectations that the Federal Reserve will give a bullish assessment of the US economy when it concludes its two-day FOMC meeting tomorrow. The pair fell to USD1.6566 on misplaced bets of a GDP miss immediately preceding the release before recovering immediately.