The GDP/USD pair is differently responding to the statistics of the British GDP; investors are at a loss.
On Thursday, the British Pound is trading differently against the USD. The current quote for the instrument is 1.2220.
Today the United Kingdom published the Prelim GDP report over the third quarter. The country’s economy improved by 0.5% q/q, more than it was predicted. Nevertheless, the quarterly growth was less that in the second quarter, when the GDP added 0.7% q/q. On a year-on-year basis, the indicator increased by 2.3% against the predicted number of 2.1%.
This data is the first one relating to the United Kingdom’s economy published after the British referendum and it includes all changes in sentiments and flows of capital. The report itself looks rather positive, given the stress the country and society have been suffering. The components of the report say that the service industry is still stronger that the manufacturing sector, but the same happened even at quiet times. The tertiary industry in the third quarter added 0/8% while the manufacturing sector dropped 0.4%. One should note that the processing industry decreased by 1.0%, the agricultural sector reduced by 0.7%, and the construction sector lost 1.4%.
Note that the decline is seen in those industries, which require long-term capital investments. Nothing is going to change as long as the market doesn’t find out what the risks connected with the oncoming Brexit procedure might be.
These mixed emotions and sentiments were the reason why the Pound didn’t get enough support after the GDP report was published.
RoboForex Analytical Department
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