- UK GDP (QoQ) (2Q A): 0.8% Actual Vs 0.8% Estimated; 0.8% Prior.
- UK GDP (YoY) (2Q A):3.1% Actual Vs 3.1% Estimated; 3.0% Prior.
- GBP/USD snaps 7-day Losing Streak After UK GDP Figures
Want to trade with proprietary strategies developed by FXCM? Find out how here.
UK 2Q Gross Domestic Product (GDP) came in at 3.1 percent year-on-year, which matched market expectations. An indicator for broad overall growth in the United Kingdom for the quarter registered at 0.8 percent against the consensus forecast of 0.8 percent. The ongoing improvement in the labor market along with the expansion in the UK housing market may have been some of the catalysts for a continued acceleration in UK’s ongoing growth says DailyFX Currency Analyst David Song.
This economic event is considered, by Chief Currency Strategist John Kicklighter, as a “high-level potential market mover’ as it holds heavy correlation with the Bank of England’s rate expectations. An acceleration in GDP-growth is expected to increase inflationary pressures which may lead to monetary policy tightening.
Before the release of the GDP figures, GBP/USD recouped some of its losses earlier in the session but stayed discouragingly below the critical 1.7000 mark. Straight after the release the British Pound shot up against the US Dollar to put an end to a potential 8-day losing streak for GBP/USD.
For those thinking about technical levels, DailyFX Currency Strategist Ilya Spivak indicates near-term support to rest at 1.6969 (23.6% Fib Ret.) and resistance at 1.7053-62 (14.6% Fib Ret.). He remains on the sidelines as entering short with prices trading in close proximity to support level is not enticing from a risk/reward perspective. Also, the absence of a defined bullish reversal signal argues against going long. Meanwhile according to DailyFX Speculative Sentiment Index, 60 percent of retail Forex traders are short the GBP/USD.
GBP/USD 5 Minute Chart
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
New to FX? START HERE!
Edward Hyon, DailyFX Research Team
Keep up to date on event risk with DailyFX Calendar
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.
Investing BasicsVirtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
Forex NewsWhen it comes to forex, some types of "fixes" are legal. But some really aren't.
- No results found.