Pound Sterling Price News and Forecast: GBP/USD catches a breather above 1.41 ahead of UK GDP, US CPI
|UK GDP Preview: Reminder of past weakness to trigger a much-needed correction in GBP/USD
The UK is set to report a contraction of 1.7% in its output in the first quarter, due to its lockdown and also Brexit. The data may trigger a much-needed correction in GBP/USD, Yohay Elam, an Analyst at FXStreet, reports.
The chance of an upside surprise is minimal
“The government took the first steps to exit these measures only in early March, and that is why economists expect economic output to drop by 1.7% quarterly. It is essential to note that these estimates are based on monthly GDP figures for January and February, thus including the worst period.”
GBP/USD: Bulls catch a breather above 1.4100 ahead of UK GDP, US inflation
GBP/USD eases from the multi-day top, marked on Tuesday, taking rounds to 1.4140 during Wednesday’s Asian session. In doing so, the cable portrays a typical cautious mood ahead of the key UK Q1 GDP and the US Consumer Price Index (CPI) data for April.
Sterling managed to refresh the highest levels since February 25 the previous day after UK’s Queen Elizabeth II outlines the government’s recovery plan in the British Parliament. “To achieve this, my government will level up opportunities across all parts of the United Kingdom, supporting jobs, businesses and economic growth and addressing the impact of the pandemic on public services,” said the 95-year-old monarch, per Reuters.
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