When are UK GDP/ Current account and how could they affect GBP/USD?

UK final Q2 GDP/ Current account Overview

The UK docket has the final Q2 GDP report, alongside the currency account data, both of which will be published later this session at 8.30GMT. The third estimate of the United Kingdom GDP is expected to remain steady at 0.3% in the second quarter, against 0.2% growth booked in Q1. The annualized reading is also expected to show that the pace of expansion stood unchanged at 1.7% in Q2.

Meanwhile, the UK current account deficit is expected to narrow by GBP -16.00 billion in the second quarter versus an increase of GBP -16.89 billion seen previously.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 40 pips in deviations up to 2.5 to -2.5, although in some cases, if notable enough, a deviation can fuel movements of up to 70 pips.

 How could affect GBP/USD?

The spot could take a beating on a negative surprise delivered by the UK releases, which could take the GBP/USD pair back towards 1.3350 levels.

Technically, “the 1-hour chart shows a bullish break of the falling channel. A break above 1.3439 [1-hour 100-MA] would expose 1.3484 [1-hour 200-MA] and 1.35 [zero levels]. On the downside, breach of support at 1.34 [zero levels] could yield a sell-off to 1.3343 [previous day's low] and 1.3320 [38.2% Fib R of Aug 24 low - Sep 20 high],” Omkar Godbole, Analyst at FXStreet notes.

Key notes

UK: Expect the final Q2 GDP estimate to be the same as the second - Nomura

UK: Q2 GDP expected to remain unchanged at 0.3% - TDS

UK: Expect small improvement in the current account deficit - Nomura

About UK final GDP

The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).