29 Apr 2015
GBP/USD briefly rises above 1.5400 after US GDP
FXStreet (Córdoba) - GBP/USD pushed higher and printed fresh 8-week highs as the dollar was hurt by a much worse-than-expected US GDP reading.
US gross domestic product rose by a mere 0.2% in the first quarter, according to the first estimate, well below the 1.0% of consensus. The US economy slowed sharply as it grew at a 2.2% pace in Q4 and 5% in the Q3.
GBP/USD rose through the 1.54 mark and hit a high of 1.5414 as the initial reaction but pulled back in the subsequent minutes. At time of writing, Cable is trading at 1.5380, 0.28% above its opening price.
The greenback was trading mixed ahead of the GDP figures. Attention now turns to the FOMC statement later on the day, where investors will be watching for any wording change for clues about the timing of the lift-off. In the light of recent weak data, expectations of a June rate hike have been pushed away to September by many analysts, weighing on the dollar.
US gross domestic product rose by a mere 0.2% in the first quarter, according to the first estimate, well below the 1.0% of consensus. The US economy slowed sharply as it grew at a 2.2% pace in Q4 and 5% in the Q3.
GBP/USD rose through the 1.54 mark and hit a high of 1.5414 as the initial reaction but pulled back in the subsequent minutes. At time of writing, Cable is trading at 1.5380, 0.28% above its opening price.
The greenback was trading mixed ahead of the GDP figures. Attention now turns to the FOMC statement later on the day, where investors will be watching for any wording change for clues about the timing of the lift-off. In the light of recent weak data, expectations of a June rate hike have been pushed away to September by many analysts, weighing on the dollar.