The GBPUSD rebound continues as the market awaits the latest UK GDP numbers.
GBPUSD – Daily Charts
The price of GBPUSD has rebounded from 1.3200 to almost 1.3600. This is a key level with the April uptrend now in play.
The UK releases its latest GDP numbers on Thursday, with markets expecting a gloomy 0.1% growth after 0.7% in the previous month.
The UK economy is expected to return to growth in June after two consecutive months of decline. Economists surveyed by Bloomberg expect the Office for National Statistics (ONS) to show a growth figure of 0.2 per cent for June. The ONS said the UK economy slowed by 0.3 per cent in April and 0.1 per cent in May as businesses continue to struggle.
The tariff effect has also had an impact on the export of British goods to the U.S., down by £2bn in April, marking the most significant monthly decrease on record.
Barclays economist Jack Meaning said a growth push in the first three months of the year, highlighted a 0.7 per cent rise in GDP, was largely driven by “temporary factors” including buyers looking to purchase goods ahead of the tariff impact. Attention will turn to the meeting between Donald Trump and Vladimir Putin after the economic data.
The U.S. national debt has now jumped above $37 trillion, which is a record sum. Despite tariff income, the government’s borrowing has accelerated, and other costs are having an effect.
The U.S. dollar has weakened on the latest signals of the Federal Reserve rate cuts. Economists now expect a reduction in September, and the latest data from the UK labour sector showed good support for the British pound.
The latest GDP figures will test the strength of the UK economy and the pound.
