UK Preliminary GDP beats estimates with 1% QoQ in Q4, GBP/USD unfazed
|- Quarterly GDP for the UK grew 1% in Q4 vs. 0.5% expected.
- UK GDP arrived at 1.2% MoM in Dec vs. 1% expected.
- GBP/USD is off the lows on the upbeat UK GDP but remains around 1.38.
The British economy expanded 1% QoQ in the final quarter of 2020 when compared to a massive 16% growth in Q3 and +0.5% expectations. On an annualized basis, the Kingdom’s GDP arrived at -7.8% in Q4 vs. -8.1% expected and -8.6% last.
The UK GDP monthly release showed that the economy expanded-more-than-expected in December, arriving at 1.2% vs. 1% expectations and -2.6% previous.
Meanwhile, the Index of services (Dec) arrived at 0.6% 3M/3M vs. 3.7% prior.
The Cable sustains the bounce from daily lows while keeping its range around 1.3800 after the upbeat UK growth numbers. The spot is still down 0.13% on the day.
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).
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