U.K. GDP data

• Business investment (q/q) (Q4), fact -0.9%, forecast -1.4%.
• Current account balance (Q4), fact -23.7B, forecast -22.9B.
• GDP (y/y) (Q4), fact 1.4%, forecast 1.3%.
• GDP (q/q) (Q4), fact 0.2%, forecast 0.2%.

The fourth quarter report on the UK GDP turned out to be very positive, due to the growth of the GDP indicator on an annualized basis. Thus, the UK GDP accelerated in the fourth quarter, despite weak expectations, showing a slowdown in the downward trend and giving hope for recovery. The negative note of the report was the data on the current account, which fell to the minimum values ​​for the year, but they have a moderate impact on the British pound.

Fig. 1. U.K. GDP (y) (Q4) chart

Despite the positive data for the UK, the dynamics of the British continues to be restrained negative because of the risks of the next failure of the vote on Brexit. The UK data may partially slow down the decline in the pound, but the fundamental risks and the overall growth of the American dollar have a more significant impact on the GBP/USD pair. Significant support levels: 1.2960 and 1.2930, resistances: 1.3070 and 1.3100.

Fig. 2. GBP/USD chart. Current price – 1.3030

Read also: “Government Bonds as a Market Driver”

Hanzenko Anton

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Topical articles of the trader’s blog:

1. Financial quarter correction
2. Prospects for the euro based on the ECB policy
3. Brexit vote results

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