UK GDP expands 0.2% MoM in April vs. 0.2% expected
- UK GDP arrived at 0.2% MoM in April vs. 0.2% expected.
- GBP/USD defends 1.2600 on as-expected UK GDP data.
The UK Gross Domestic Product (GDP) monthly release for April, reported this Wednesday, showed that the British economy grew 0.2% in April, matching the 0.2% expectations and following a 0.3% contraction in March.
Meanwhile, the Index of services (April) came in at -0.1% 3M/3M vs. 0.1% estimate and 0.1% prior.
Commenting on the UK GDP data, Chancellor Jeremy Hunt said that “high growth needs low inflation and we must stick relentlessly to our plan to halve rate this year.”
Market reaction
The GBP/USD pair is little changed on in line with expectations UK GDP data. At the press time, the spot is losing 0.05% on the day to trade at 1.2605, awaiting the Fed verdict for fresh trading impetus.
About UK GDP
The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered 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).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
