UK Preliminary GDP meets estimates with 4.8% QoQ in Q2, GBP/USD uninspired
- Quarterly GDP for the UK expanded by 4.8% in Q2 vs. 4.8% expected.
- UK GDP arrived at 1.0% MoM in June vs. 0.8% expected.
- GBP/USD is little changed around 1.3870 on in-line with expectations UK GDP.
The British economy rebounded 4.8% QoQ in the second quarter of 2021 when compared to a 1.6% contraction seen in Q1 and 4.8% expectations. On an annualized basis, the Kingdom’s GDP arrived at 22.2% in Q2 vs. 22.1% expected and -6.1% last.
The UK GDP monthly release showed that the economy expanded more than expected in June, arriving at 1.0% vs. 0.8% expectations and 0.6% previous.
Meanwhile, the Index of services (June) arrived at 5.7% 3M/3M vs. 3.9% prior.
The Cable keeps its range around 1.3870 after the mixed UK growth numbers. The spot is modestly flat 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.
