- UK GDP arrived at 0.8% MoM in January vs. 0.2% expected.
- GBP/USD rebounds to test 1.3100 on upbeat UK GDP.
The UK GDP monthly release showed that the economy expanded more than expected in January, arriving at 0.8% vs. 0.2% expectations and -0.2% previous.
Meanwhile, the Index of services (January) arrived at 1.0% 3M/3M vs. 1.2% estimate and 1.2% prior.
The Cable extends its recovery from sixteen-month lows to retest 1.3100 on the above forecasts UK growth numbers. The spot is adding 0.13% 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).