It seems to be a good opportunity for the British Pound to strengthen backed by the statistics, but the currency has been going round in circles for the third day is a row.
The British Pound is lacking initiative: three consecutive trading sessions are no different from each other for GBP/USD pair, and intraday numbers, in general, remain stable. The current quote for the instrument is 1.3207.
Today’s statistics indicated that the growth rates of the country’s GDP, according to the revised numbers, are the same as expected. The British economy expanded by 0.6% q/q (+2.2% y/y). The numbers are in complete accordance with the predictions.
All fine and dandy, as the British say, but on June 23rd
the United Kingdom held a popular vote relating to the brexit. At that time, only one week was left until the end of the quarter, which was probably quite neutral, and it means that all negative consequences, such as doubts, avoiding risks, and capital outflows, will mostly influence the third quarter. In this light, it is quite possible that the second quarter was the most successful for the British economic system. We’re highly unlikely to see a lot of optimism in the GDP numbers until the end of the year.
The components of the GDP report show that from April to July 2016, business and enterprise investments increased significantly. In the third quarter, this indicator is sure to fall, not plummet, no – the country hasn’t left the Union after all. However, quite often doubts destroy the system much faster than any decisive actions.
RoboForex Analytical Department
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