UK GDP contracts by 0.3% in April, a negative surprise
- UK GDP arrived at -0.3% MoM in April vs. 0.2% expected.
- GBP/USD remains capped below 1.2300 on downbeat UK GDP.
The UK GDP monthly release showed that the economy unexpectedly contracted in April, arriving at -0.3% vs. 0.2% expectations and -0.1% previous.
Meanwhile, the Index of services (April) came in at 0% 3M/3M vs. 0.4% estimate and 0.4% prior.
The Cable pauses its recovery from one-month lows near 1.2280 on the downside surprise in the UK growth numbers. The spot is shedding 0.32% on the day.
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 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).
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.
