UK Preliminary GDP beats estimates with 1% QoQ in Q4, GBP/USD unfazed
- Quarterly GDP for the UK grew 1% in Q4 vs. 0.5% expected.
- UK GDP arrived at 1.2% MoM in Dec vs. 1% expected.
- GBP/USD is off the lows on the upbeat UK GDP but remains around 1.38.
The British economy expanded 1% QoQ in the final quarter of 2020 when compared to a massive 16% growth in Q3 and +0.5% expectations. On an annualized basis, the Kingdom’s GDP arrived at -7.8% in Q4 vs. -8.1% expected and -8.6% last.
The UK GDP monthly release showed that the economy expanded-more-than-expected in December, arriving at 1.2% vs. 1% expectations and -2.6% previous.
Meanwhile, the Index of services (Dec) arrived at 0.6% 3M/3M vs. 3.7% prior.
The Cable sustains the bounce from daily lows while keeping its range around 1.3800 after the upbeat UK growth numbers. The spot is still down 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.
