UK GDP expands 1.8% MoM in May vs. +5.0% expected, GBP/USD unfazed

UK GDP arrived at +1.8% MoM in May vs. +5.0% expected.
GBP/USD keeps the red below 1.2550 on downbeat data

Dhwani Mehta FXStreet

The UK GDP monthly release showed that the economy expanded less-than-expected in May, arriving at +1.8% versus +5.0% expected and -20.3% previous.

Meanwhile, Index of services (May) arrived at -18.9% 3M/3M vs.-9.9% prior.

Commenting on the data, the UK Finance Minister Rishi Sunak said, “today’s GDP figures underline the scale of the challenge we face.”

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).

FX implications

The Cable continues to probe the multi-day lows near 1.2540, as the pound remains depressed by the downbeat UK growth numbers.

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.

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