UK GDP disappoints with 0% in January, GBP/USD holds BOE-related gains

Yohay Elam FXStreet

The UK economy stagnated in January, worse than 0.2% expected and 0.3% in December. On a three month basis, the economy remained flat compared to 0.1% projected. Year over year, Gross Domestic Product is up 0.6% versus 0.9% projected and 1.2% in December.

Industrial Production fell by 0.1% in January, worse than +0.3% expected. Yearly, the output is down 2.9%, below -2.6% projected. Manufacturing production met expectations with 0.2% monthly and marginally missed with -3.6% compared with 3.5% projected.

GBP/UDS is trading around 1.2960, holding onto its gains after the Bank of England slashed interest rates by 50 basis points and introduced a new £100 lending scheme to counter the economic fallout from coronavirus.

See GBP/USD Forecast: Three reasons why the surprise BOE cut is pound-positive, levels to watch

Here are the latest moves on the 15-minute chart.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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