UK GDP rebounds by 0.8% in January, a big beat
- UK GDP arrived at 0.8% MoM in January vs. 0.2% expected.
- GBP/USD rebounds to test 1.3100 on upbeat UK GDP.
The UK GDP monthly release showed that the economy expanded more than expected in January, arriving at 0.8% vs. 0.2% expectations and -0.2% previous.
Meanwhile, the Index of services (January) arrived at 1.0% 3M/3M vs. 1.2% estimate and 1.2% prior.
The Cable extends its recovery from sixteen-month lows to retest 1.3100 on the above forecasts UK growth numbers. The spot is adding 0.13% 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.
