When are the UK GDP/ Current account and how could they affect GBP/USD?
|The UK final Q3 GDP/ Current account Overview
The UK docket has the final Q3 GDP report, alongside the current account data, both of which will be published later this session at 0930 GMT. The third estimate of the United Kingdom GDP is expected to remain steady at 0.4% in the third quarter, same as that seen in the previous readout. The annualized reading is also expected to show that the pace of expansion stood unchanged at 1.5% in Q3.
Meanwhile, the UK current account deficit is expected to narrow by GBP -20.20 billion in the third quarter versus a GBP -23.10 billion figure 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 GBP/USD pair is expected to have limited impact from the UK releases, which will leave the rates at the mercy of the broader markets sentiment amid pre-holiday light trading.
“Technically, a short-term descending trend-line resistance, currently near the 1.3400 handle, continues to keep a lid on the up-move. A clear break through the mentioned barrier is likely to accelerate the up-move towards 1.3470-75 supply zone before the pair eventually darts towards reclaiming the key 1.35 psychological mark, also nearing another descending trend-line resistance. On the flip side, the 1.3330-25 region now seems to have emerged as immediate support, below which the pair should easily slip back to the 1.3300 important support,” Haresh Menghani, Analyst at FXStreet notes.
Key notes
Market movers today – Danske Bank
GBP/USD stuck in 20-pips range ahead of UK GDP
GBP: To buy or not to buy? - Rabobank
About the UK final GDP
The Gross Domestic Product released by the Office for National Statistics (ONS) 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).
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