Sign in to your account

Pound Rallies on Positive UK GDP Report

The British pound found some respite this Friday morning from both the US dollar and the local UK GDP release (see economic calendar below). UK GDP beat estimates on the headline YoY print as well as the business investment metric. An overall positive report that was driven by the production sector from an output point of view as well as an uptick in household savings ratio and disposable income. After the recent gloomy UK economic outlook, these figures bring some positivity with the UK’s Chancellor Hunt stating that “Today’s GDP data once again proves doubters wrong”.

The resultant impact on Bank of England (BoE) expectations (refer to table below) has been slightly repriced in favor of a higher peak and lesser interest rate cuts by year end 2024. The culmination of which has bolstered GBP in early trade.

Other News