The Pound is “processing” the statistics. Overview for 22.02.2017
The GBP/USD pair is trading downwards after the UK published some mixed macroeconomic reports.
The market is quite rough for the British Pound today. The current quote for the GBP/USD pair is 1.2443.
On Wednesday afternoon, they published the GDP Growth Rate 2nd Estimation over the fourth quarter 2016. The indicator expanded by 0.7% q/q against expectations of 0.6% q/q. On YoY, the United Kingdom’s economy added 2.0% against the 1st reading of 2.2%.
Broadly speaking, this was the reason why the Pound retreated. Earlier, they said that the country’s economy was steady under pressure, business and employment market were stable despite the forthcoming procedure of the United Kingdom’s exiting the European Union. However, more and more indirect references, sentiments, and tendencies appear that the economic activity in the country may reduce until things clear up. Everyone understands this.
At the same time, the demand for the USD remains strong in anticipation of the USA FOMC Meeting Minutes. The more indications that the rate might be increased investors find in the report, the more support the American currency will get. Consequently, the Pound will find itself under pressure again.
RoboForex Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.