UK GDP expands 1.8% MoM in May vs. +5.0% expected, GBP/USD unfazed
|- UK GDP arrived at +1.8% MoM in May vs. +5.0% expected.
- GBP/USD keeps the red below 1.2550 on downbeat data
The UK GDP monthly release showed that the economy expanded less-than-expected in May, arriving at +1.8% versus +5.0% expected and -20.3% previous.
Meanwhile, Index of services (May) arrived at -18.9% 3M/3M vs.-9.9% prior.
Commenting on the data, the UK Finance Minister Rishi Sunak said, “today’s GDP figures underline the scale of the challenge we face.”
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).
FX implications
The Cable continues to probe the multi-day lows near 1.2540, as the pound remains depressed by the downbeat UK growth numbers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.