- UK GDP arrived at -0.3% MoM in April vs. 0.2% expected.
- GBP/USD remains capped below 1.2300 on downbeat UK GDP.
The UK GDP monthly release showed that the economy unexpectedly contracted in April, arriving at -0.3% vs. 0.2% expectations and -0.1% previous.
Meanwhile, the Index of services (April) came in at 0% 3M/3M vs. 0.4% estimate and 0.4% prior.
The Cable pauses its recovery from one-month lows near 1.2280 on the downside surprise in the UK growth numbers. The spot is shedding 0.32% on the day.
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).