The GBP/USD pair is pretty positive on Friday despite the statistics.
At the end of April, the British Pound is trading to the upside against the USD. The current quote for the instrument is 1.2948; it is bought for four out of five trading sessions this week.
Today’s statistics showed that the Gfk Consumer Confidence was -7 points in April, matching expectations, but less than the month before, -6 points. The indicator describes consumers’ attitude towards purchases. The Gfk says that the negative reading is not a signal for continuous decline of the economic situation.
The Preliminary GDP expanded by 0.3% q/q (+2.1% y/y) in the first quarter 2017. The predicted numbers were 0.4% q/q and 2.2% y/y respectively. In the fourth quarter of 2016, the country’s economy increased by 0.7% q/q.
It’s highly likely that in this case the major contribution was made by both the seasonal component and the start of the Brexit.
By the way, talking of the Brexit. As they say in the media today, London is working out a plan to introduce sanctions against some foreign countries and may implement it right after exiting the European Union. On paper, it is done in order to protect local manufacturers.
Apparently, it doesn’t scare the Pound. However, early parliamentary elections (three years earlier) don’t scare the national currency as well.
RoboForex Analytical Department