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Forex pairs in this Article » GBP/USD (New York) - The GBP/USD fell by almost a cent against the dollar and euro yesterday following a set of historical revisions to UK GDP data, which meant that UK output was revised to stand 3.9% below its pre-crisis peak, from just 2.6% below that level previously, notes Lee McDarby, Corporate Treasury at Investec.

First quarter output was left unrevised at +0.3% on the quarter, in line with expectations, although this headline garnered little attention against the broader set of historical revisions. The current account deficit added to the downbeat news, widening by a further £500m on the previous quarter when expectations were of a narrowing by £2bn.

The silver lining of yesterday’s releases was that the UK economy was no longer adjudged to have ‘double-dipped’ with Q1 2012 GDP (the mid-point of the three consecutive quarters of decline that marked the second UK recession since 2008) revised to flat from -0.1%, wiping away the technical second recession. However, the bottom line was that yesterday’s re-writes leave the UK economy with further to go on the road to recovery than previously thought.” McDarby adds.
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