GBPUSD continues falling; the “greenback” pressures too much.
The British Pound is looking weak against the USD. The current quote for the instrument is 1.3852.
The Final GDP in the UK in the first quarter was worse than expected at -1.6% q/q against the previous estimate of -1.5% q/q. The key reason for this decline is the re-introduction of social restrictions in the country early in the year.
On YoY, the indicator lost 6.1%.
The components of the report are quite interesting: there were declines in both household consumption (-4.6%) and business investment (-10.7%). On the other hand, public investment grew by 3.7%, the most since the second quarter of 2019. The trade balance improved and shows only 0.1% deficit.
The British economy is having hard times right now that’s why one shouldn’t expect any surges in the second-quarter data. However, the COVID-19 restrictions are slowly being removed, so the situation should improve.