GBP: Modest upward revisions to first quarter GDP – ING

GBP/USD is edging higher today – helped in part by an upward revision to the first quarter GDP data, Global Head of Markets at ING Chris Turner notes.

Positive quarter GDP pushed Sterling upwards

“Encouragingly, consumption seemed to be the biggest driver here. However, we still forecast the Bank of England (BoE) will begin cutting rates in August and will start to signal that in speeches once the 4 July general election has passed.”

“Somewhat amazingly, UK rates are still priced very similarly to the US. We have a much greater conviction that UK rates will come lower and that Pound Sterling (GBP) will be dragged lower too. GBP/CHF has had a decent bounce off of 1.1200, but we look for the move to stall ahead of 1.1400 and a return to 1.12 this summer.”