Trading News UK – GDP meets expectations

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A mixture of economic data from UK, which were rather negative, came out earlier, without imposing significant impact on the Sterling. The year over year and the quarterly GDP rates were released as expected at 1.8% and 0.5% respectively. The Total Business Investment survey was released at the rate of -7.1%, while the expected value was 2.4%. Furthermore, the Mortgage Approvals for April declined to 29.4K compared to 32.2K which was the forecast and 31.2K which was the reading for March. The Gross Domestic Product measures the total value of goods and services which were produced in the country and it is a very important measure of the domestic economic activity, higher rates influence positively the British Pound. Upon the announcement of the news the Cable initially lost some 21 pips to end to 1.6135, however the Sterling bounced back quickly to 1.6168. Currently the GBPUSD pair is trading at 1.6165, aiming the next resistance level at 1.6179.