The GBPUSD exchange rate has GDP growth figures ahead on Wednesday.
GBPUSD – Daily Chart
GBPUSD trades at 1.2795 after a recent push higher and will look to continue toward 1.30. Support comes in lower at 1.25.
The UK economy will release January GDP growth figures at 3 pm HKT, and analysts expect another negative reading of -0.1%. If that number improves, the pound could get a boost.
According to a leading economist at the Office for Budget Responsibility (OBR), the country’s slowdown in growth since the financial crisis has been “catastrophically bad” for the economy.
Since the financial crisis, productivity growth in the UK has slowed down from its pre-2008 trend and has fallen behind its international peers. Slower productivity growth has shown up in much weaker economic growth figures.
“15 years ago, people thought the level of GDP would be 30% higher than it is today,” David Miles said.
“Part of the reason why there are no easy choices for any government right now is that GDP is much lower than people thought,” he added.
Job vacancies in England have dropped to their lowest level in over three years, reducing hopes that the UK economy will recover quickly from last year’s recession.
The chancellor, Jeremy Hunt, said in last week’s budget that the economy would soon turn the corner again. But the OBR, the government’s spending watchdog, said the outlook “remains challenging.”
Figures for the US dollar on Thursday will be the PPI pricing data and retail sales.
