Two-day sales of the GBP/USD pair stopped; the market is following the news.
The British Pound stopped falling against the USD on Thursday. The current quote for the instrument is 1.2821.
The second estimate of the GDP Growth Rate in the second quarter 2017 showed that the indicator expanded by 0.3% q/q (1.7% y/y) and matched expectations. The components of the report show that despite the overall positive tone, the Household Spending is slowly decreasing. The same can be said about the Business Investment.
Both households and businesses are very “sensitive” structures. Slowdown in rate of growth here may later result in the same slowdown of the United Kingdom’s GDP itself. Of course, this is just one signal. In the second quarter 2017, the Import added 0.4% q/q and 1.8% y/y. In its turn, the Export increased by 1.5% y/y (valid only for goods).
The BBA Mortgage Approvals was 41.6K in July, which is more than the previous reading of 40.4K.
The CBI Distributive Trades plummeted in August up to -10 points. In July, the indicator was 22 points and was expected to fall up to 15 points. Since today’s reading is negative, it may signal some serious problems in sales. It already happened this year, in January, but later the situation got better.
RoboForex Analytical Department