GBP Decision Day – GDP Winner

The GBP received an update yesterday morning. The employment report has great potential to move GBP pairs and it succeeded.


The GBP received an update yesterday morning. The employment report has great potential to move GBP pairs and it succeeded. The earnings remained unchanged while the unemployment rate went up a decimal point.

The decline of the GBP and the GBP/USD began early this morning and lost about 100 pips. However, it went back up later in the afternoon as the USD lost some ground after the FOMC meeting minutes.

Since the FED members appeared hawkish on economic growth and on the rise of the rates this year, what just happened with the GBP/USD was odd. It’s not a big surprise that this has been the fate of the Dollar for more than a year now.

 

The UK GDP

At 9:30 GMT today, the UK GDP report will be published. Since earnings remain unchanged, this report is even more important for the GBP than wages.

This is the second estimate for the Q4 of 2017. It is expected to remain unchanged at 0.5% like the previous reading. That would be slightly better for the GBP since the market expects the UK economy to have difficulties due to Brexit.

Busines investments are included in this report as well. It shows how businesses respond to the future of the economy and is a leading indicator which forex traders love. We must keep an eye on that component of the employment report as well.

I expect the GBP to rally if both indicators are positive but not for too long as Brexit is underway and the GBP/USD is currently trading considerably high. Grab what you can and call it a day.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers