GBP/USD struggles to capitalize on upbeat UK data

British Pound edges higher after GDP surprise

The week wrapped up on a high note in the UK, as the economy grew by 0.2% q/q in the second quarter. The gain was indeed modest, but it beat the consensus estimate of zero growth and the first quarter reading of 0.1%. The struggling UK economy thus managed to elude stagnation. Another good piece of news was that June GDP climbed 0.5% m/m, above the estimate of 0.2% and rebounding from the May reading of -0.1%. This is the highest monthly growth rate since October 2022.

The Bank of England has had a rough time in its battle with inflation, despite raising interest rates to 5.25%, the highest level since February 2008. Inflation stands at 7.9%, the highest in the G7 club and nowhere near the BoE’s target of 2%. The slight improvement in economic growth will be welcome news at the Bank as there is a real concern that the combination of rising rates and a weak economy could result in a recession. Read more…

GBP/USD Forecast: Pound Sterling struggles to capitalize on upbeat UK data

GBP/USD edged higher in the European morning and climbed above 1.2700. However, the negative shift seen in risk mood doesn’t allow the pair to gather further bullish momentum.

Real Gross Domestic Product in the UK expanded at an annual rate of 0.4% in the second quarter, better than the market expectation for a 0.2% growth, the UK’s Office for National Statistics reported on Friday. Other data from the UK showed that Industrial Production and Manufacturing Production increased 1.8% and 2.4%, respectively, on a monthly basis in June. Read more…

GBP/USD portrays anxiety ahead of UK Q2 GDP above 1.2650 despite US Dollar’s retreat on Fed concerns

GBP/USD stays defensive beyond an 11-week-old rising support line, making rounds to 1.2680-90 heading into Friday’s London open. In doing so, the Cable pair justifies the market’s cautious mood of the first readings of the UK’s second quarter (Q2) Gross Domestic Product (GDP), expected 0.0% QoQ versus 0.1% prior, especially amid fears of British recession. However, the US Dollar’s retreat prods the Pound Sterling sellers of late.

That said, the US Dollar Index (DXY) fails to extend the late Thursday’s rebound from the lowest level in a week as a slew of policymakers from the Federal Reserve (Fed) conveyed the US central bank’s hard-earned victory on inflation. Even so, their tones appeared less convincing for doves and joined the risk-negative concerns about China to limit the Greenback’s fall and test the Cable buyers. Read more…