-1691746307.png)
GDP Beats Forecasts
GBP has seen better demand today on the back of the latest UK GDP data released this morning. A gloomy report from the NIESR yesterday weighed on GBP sentiment ahead of the release. However, with the preliminary Q2 GDP data showing a 0.2% rise, against the 0% result expected, GBP has been higher today. The data suggests that the UK economy avoided recession once again last quarter, despite growth still being very weak.
Weak UK Growth Outlook
With Q1 seeing growth of just 0.1%, economic activity is still looking very fragile in the UK. Yesterday, the NIESR released a report disclosing its view that the UK economy will likely avoid recession this year but has around a 60% chance of falling into negative growth next year as a result of the impact of ongoing BOE tightening, inflation and other elements such as Brexit and the Russia-Ukraine war. The UK economy has been among the worst performers in the G7 this year. Looking ahead today the group will release an official GDP estimate which will be closely watched on the back of yesterday’s report.
Technical Views
GBPUSD
The correction lower in GBPUSD has seen the market breaking below the bull channel lows with price now testing the 1.2659 support level. This is a key support area for the market and should we break below here, focus will shift to 1.2437 next. To the topside, 1.2992 is the key level for bulls to get back above, putting the focus back on 1.3277 above.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.