24 Oct 2013
GBP/USD Sterling struggles to make gains despite robust GDP expectations
FXstreet.com (London) - Sterling has been hit by some choppy trading this morning ahead of tomorrow’s GDP figures. GBP/USD climbed to a high of USD1.6223 soon after the open but has trimmed gains to where it started around GBP1.6170.
It is anticipated that tomorrow’s GDP numbers will reflect the steady stream of positive UK macro data that we have seen over the last quarter, with preliminary figures from the Office for National Statistics expected to show the economy grew by 0.8 percent in the third quarter.
Bank of England minutes released yesterday indicate that policymakers are confident about UK growth with hints that third quarter figures are stronger than anticipated.
Sterling has seen steady gains since 9 July lows at USD1.4954 on consistent data. However, sterling may be crossing into overbought territory and any further gains could be under risk from the normalisation of positive data, increasing downside risk. Any further significant gains are now more likely to come from dollar weakness, as the greenback is weighed by continuing QE expectations and the prospect of another debt ceiling stand-off when the temporary debt ceiling extension is reached on 7 February 2014.
It is anticipated that tomorrow’s GDP numbers will reflect the steady stream of positive UK macro data that we have seen over the last quarter, with preliminary figures from the Office for National Statistics expected to show the economy grew by 0.8 percent in the third quarter.
Bank of England minutes released yesterday indicate that policymakers are confident about UK growth with hints that third quarter figures are stronger than anticipated.
Sterling has seen steady gains since 9 July lows at USD1.4954 on consistent data. However, sterling may be crossing into overbought territory and any further gains could be under risk from the normalisation of positive data, increasing downside risk. Any further significant gains are now more likely to come from dollar weakness, as the greenback is weighed by continuing QE expectations and the prospect of another debt ceiling stand-off when the temporary debt ceiling extension is reached on 7 February 2014.