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28 Aug 2015
GBP/USD swings back to 1.5430 as UK economy keeps pace
FXStreet (Mumbai) - The GBP/USD pair bounced-off 1.5400 levels and jolted higher in the European morning, as the pound received fresh impetus following the release of UK GDP data which revealed that the British economy continued to expand during the second quarter.
GBP/USD spikes on upbeat data
The GBP/USD pair trades 0.17% higher at 1.5429, bouncing from 1.5400 levels reached just before data release. The cable was caught by a fresh bid wave as the UK traders cheered the second estimate of the UK GDP figures which showed that the economy kept the pace of growth driven mainly by a robust services sector and an increase in exports. Markets now anticipate that the upbeat GDP figure may bring BOE rate hike bets this year back on the table.
The UK economy grew at the rate of 0.7% between the first and second quarters, and rose 2.6% on a year-on-year basis. This was the tenth consecutive quarter of positive growth, the Office for National Statistics (ONS) informed on Friday.
While in a separate release, the ONS said business investment was up by 2.9% in the second quarter compared with the previous quarter driven by machinery equipment and intellectual property products.
Looking ahead, the US session will attract attention as the recent series of upbeat US data, including better-than-expected US Q2 GDP, added to USD strength in the overnight session.
The Jackson Hole Symposium will continue for the second day, while on the macro front investors will eye personal income data and the University of Michigan confidence survey.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5443 (Today’s High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5404 (Today’s Low) below which it could extend losses to 1.5368 (Aug 27 Low) levels.
GBP/USD spikes on upbeat data
The GBP/USD pair trades 0.17% higher at 1.5429, bouncing from 1.5400 levels reached just before data release. The cable was caught by a fresh bid wave as the UK traders cheered the second estimate of the UK GDP figures which showed that the economy kept the pace of growth driven mainly by a robust services sector and an increase in exports. Markets now anticipate that the upbeat GDP figure may bring BOE rate hike bets this year back on the table.
The UK economy grew at the rate of 0.7% between the first and second quarters, and rose 2.6% on a year-on-year basis. This was the tenth consecutive quarter of positive growth, the Office for National Statistics (ONS) informed on Friday.
While in a separate release, the ONS said business investment was up by 2.9% in the second quarter compared with the previous quarter driven by machinery equipment and intellectual property products.
Looking ahead, the US session will attract attention as the recent series of upbeat US data, including better-than-expected US Q2 GDP, added to USD strength in the overnight session.
The Jackson Hole Symposium will continue for the second day, while on the macro front investors will eye personal income data and the University of Michigan confidence survey.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5443 (Today’s High) above which gains could be extended to 1.5509 (Aug 27 High) levels. On the flip side, support is seen at 1.5404 (Today’s Low) below which it could extend losses to 1.5368 (Aug 27 Low) levels.