UK Q2 GDP Falls by a File 20.4% However Indicators of a Restoration Seem, GBPUSD Unchanged

UK Q2 GDP and GBP/USD Value, Chart and Evaluation:

• UK Q2 GDP fell by a file 20.4%, the most important contraction on file.
• Sterling unchanged on the discharge as June knowledge factors to a pick-up in exercise.

The newest UK GDP knowledge confirmed that the economic system entered right into a technical recession as exercise slumped throughout the board. The preliminary Q2 q/q studying fell by a file 20.4%, the most important fall since quarterly data started in 1955. In the present day’s ONS knowledge reveals that the UK economic system is now 22.1% smaller than it was on the finish of 2019, highlighting the impact the COVID-19 pandemic has had on financial exercise.

There was a small ray of sunshine in in the present day’s launch with the June month-to-month studying displaying progress of 8.7%, beating estimates of 8.0% because the UK started to unwind lockdown measures.

For all market-moving knowledge releases and occasions see the DailyFX Financial Calendar

GBP/USD stays little modified post-GDP launch and trades just below 1.3050, a stage the pair opened up at this week. Brief-term assist stays across the 1.3000 large determine with 1.2978 a secondary stage consisting of the 20-dma and the August low print. The technical golden cross – 50-dma by means of the 200-dma – nonetheless underpins Sterling to a sure extent with Tuesday’s excessive of 1.3136 the primary upside goal.

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GBP/USD Every day Value Chart (December 2019 – August 12, 2020)

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What’s your view on Sterling – bullish or bearish?? You may tell us by way of the shape on the finish of this piece or you may contact the creator by way of Twitter @nickcawley1.