28 Jan 2016
GBP rallied in response to expected Q4 GDP - BBH
FXStreet (Delhi) – Research Team at BBH, notes that the sterling rallied in response, it appears, to an as expected Q4 GDP print.
Key Quotes
“The 0.5% expansion compares with 0.4% in Q3. Although many, like us, feared the UK economy lost momentum in the second half of last year, it is not to be found in today's report. However, the slowing is evident is in the year-over-year pace. It slowed to 1.9% from 2.1%, the slowest pace in three years. Moreover, growth was confined to services, with the other sectors contracting.
Sterling's gains today leave it within yesterday's ranges. In fact, if today's high holds near $1.4345, it is the second day of lower highs. A two-week high was recorded on Tuesday just below $1.4370. The intraday technicals warn that if sterling has not peaked for the day, it has likely come very close."
Key Quotes
“The 0.5% expansion compares with 0.4% in Q3. Although many, like us, feared the UK economy lost momentum in the second half of last year, it is not to be found in today's report. However, the slowing is evident is in the year-over-year pace. It slowed to 1.9% from 2.1%, the slowest pace in three years. Moreover, growth was confined to services, with the other sectors contracting.
Sterling's gains today leave it within yesterday's ranges. In fact, if today's high holds near $1.4345, it is the second day of lower highs. A two-week high was recorded on Tuesday just below $1.4370. The intraday technicals warn that if sterling has not peaked for the day, it has likely come very close."