- UK GDP arrived at -20.4%% MoM in April vs. -18.4% expected.
- GBP/USD holds on to the latest recovery attempt post-data.
The UK GDP monthly release showed that the economy contracted by a record during April lockdown, arriving at -20.4% versus -18.4% expected and -5.8% previous.
Meanwhile, Index of services (April) arrived at -9.9% 3M/3M vs. -2.0% expected and -1.9% prior.
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 daily highs at the 1.2600 level, largely unfazed by the UK growth numbers.
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