Pound Rises After U.K. Q2 GDP Growth Revised Higher
September 30 2016 - 01:30AM
RTTF2
The British pound strengthened against the other major
currencies in the European session on Friday, after the U.K.
economy grew more than previously estimated in the second
quarter.
Data from the Office for National Statistics showed that Gross
domestic product climbed 0.7 percent sequentially in the second
quarter, slightly revised up from the second estimate of 0.6
percent. This was the 14th consecutive quarter of positive growth
since the first quarter of 2013.
Meanwhile, the annual growth for the second quarter was revised
down to 2.1 percent from 2.2 percent.
Another report showed that the current account deficit totaled
GBP 28.7 billion in the second quarter, up from a revised deficit
of GBP 27 billion. The deficit equated to 5.9 percent of GDP.
The ONS said services output advanced 0.4 percent in July from
June. On a yearly basis, the index of services grew 2.9
percent.
Gross fixed capital formation climbed 1.6 percent sequentially
to GBP 78.1 billion in the second quarter.
At the same time, business investment grew 1 percent to GBP 43.8
billion in the second quarter.
In the Asian trading today, the pound held steady against its
major rivals.
In the early European trading, the pound rose to 1.2991 against
the U.S. dollar and 131.32 against the yen, from early 3-day low of
1.2937 and 130.42, respectively. If the pound extends its uptrend,
it is likely to find resistance around 1.31 against the greenback
and 135.00 against the yen.
The pound advanced to 0.8611 against the euro, from an early low
of 0.8662. The pound may test resistance around the 0.84 area.
Against the Swiss franc, the pound edged up to 1.2579 from an
early 4-day low of 1.2506. On the upside, 1.29 is seen as the next
resistance level for the franc.
Looking ahead, Canada GDP data for August, Canada industrial and
raw materials products price indexes for August, U.S. personal
income and spending data for August, U.S. University of Michigan
final consumer sentiment index for September, U.S. Chicago
purchasing manager index for September and U.S. Baker Hughes rig
count data are set to be announced in the New York session.
At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan will participate in a moderated Q&A session before the
Stemmons Corridor Business Association 35th Annual Meeting, in
Dallas, United States.
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