FXStreet (Bali) - In a note to clients, RBS suggests that they still see the risks for Friday's Q2 UK GDP as moderately on the downside, which could keep the downside pressure on the British Pound.
"Second quarter GDP is due in the UK and we anticipate the economy expanded 0.8% q/q, matching the first quarter pace. While still a solid pace of growth, an 0.8% result would actually be below the Bank of England’s own forecast for 2Q GDP growth (0.9%)."
"We see the risks around our forecasts as moderately on the downside, and a slightly softer than expected second quarter outturn could keep the downside pressure on GBP. Further out, our outlook for the second half of 2014 is for a modest slowdown in the pace of expansion."