The UK releases its second estimate of GDP at 08:30 GMT for the first quarter of 2018. Preliminary Q1 GDP disappointed at 0.1% q/q (median estimate 0.3%) from 0.4% in Q4. What next can we expect? This is unveiled in today’s 25 May GBPUSD Trading Outlook.
25 May, HotForex – The Preliminary Q1 GDP was the lowest growth seen since Q4 2012. At the time the notorious “Beast from the East” snowstorms got he the blame. Chancellor Hammond said after the data was released that the economy remained strong, pointing to the exceptional weather as impacting growth in Q1.
UK Q1 GDP Figures Overview
However, the ONS stats office said that the impact of snow on output over the quarter was “relatively small” (pointing to increased online retail sales activity, for instance, as a consequence of the inclement weather) and that soft growth in part “reflects pockets of weakness more broadly across the country.”
The data was the final nail in the coffin for the odds for a BoE tightening in last week and the subsequent dovish tones from the BOE. Expectations are for no change at 0.1% QoQ and 1.2% YoY.
25 May GBPUSD Trading Outlook
Sterling remains weighed down with limited expectations, Cable approaches 1.3350, GBPJPY struggles to hold 146.00and EURGBP at 0.8558.
This article about UK Q1 GDP Figures: 25 May GBPUSD Trading Outlook was written by Stuart Cowell, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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