The Pound Sterling (GBP) exchange rate was little changed against the Euro (EUR) and US Dollar (USD) on Friday even as the latest year on year UK GDP data came in stronger than forecast.
According to the Office for National Statistics (ONS), the UK economy expanded by 0.8% in the second quarter of the year, confirming its first estimate.
On a yearly basis, the figures showed that the UK economy is now growing at its fastest annual pace in more than six years.
The report showed that the economy expanded by 3.2% when compared with the second quarter of last year, up from the previous figure of 3.1%.
The stronger than expected figure was the fastest annual pace of expansion since the end of 2007.
‘Today’s figures confirm that our economy has recovered all of the output lost in the Great Recession, and is now bigger than its previous peak in the first quarter of 2008. The government’s long-term economic plan is working, with the economy growing at its fastest annual rate in six years. But the job is not yet done and so we will go on making the realistic assessment of what needs to be done to secure a brighter economic future,’ said a spokesperson for the Treasury.
The ONS said that the upward revision for the yearly growth rate was due to the improved performance of the nation’s construction sector.
It also added that the UK economy is now 0.2% bigger than it was before the first quarter of 2008, the economies previous peak before the start of the financial crisis.
Pound Sterling Exchange Rate Forecast
Despite the positive data, the Pound was continuing to be under pressure after the Bank of England cut its wage growth forecast for the remainder of the year in half.
It also added that an improvement in wage growth would be a key factor as to when the BoE will raise interest rates.
As a result, investors pushed back their bets for a rate hike occurring before the end of this year.
Later in the session, the Pound could weaken against the US Dollar. Later in the day, the U.S. was to release reports on manufacturing activity in New York state and industrial output, as well as preliminary data on consumer sentiment.
Positive reports will provide support for the ‘Greenback’ at the expense of the Pound.
Pound (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,US Dollar,1.6695 ,
Pound Sterling,,Euro,1.2469 ,
Pound Sterling,,Australian Dollar,1.7894 ,
Pound Sterling,,New Zealand Dollar,1.9656 ,
US Dollar,,Pound Sterling,0.5994 ,
Euro,, Pound Sterling ,0.8020 ,
Australian Dollar,, Pound Sterling ,0.5587 ,
New Zealand Dollar,, Pound Sterling,0.5088 ,
[/table]
Comments are closed.