Economic growth data may prove market-moving for the British Pound ahead of the weekend as it will cement expectations as to whether or not a May interest rate rise is on.
The third and final estimate of Business Investment in Q4 2017 was revised up by 0.3% quarter-on-quarter (QoQ) from a second estimate of only 0.0% on Thursday, according to data from the Office of National Statistics (ONS).
Thursday’s data will inevitably fill column inches but it is unlikely to prove a game changer for the Bank of England and Pound Sterling
Economists at global financial services giant UBS have told clients they believe the Bank of England will raise interest rates in May.
“A key reason why most forecasters were too gloomy about the UK economy last year was that Brexit related uncertainty was much less damaging than they had expected,” - Jonathan Loynes, chief economist at Capital Economics.
The British Pound went higher after GDP data came in almost four times as strong as the post-referendum consensus prediction.
Analysts at Bank of America Merrill Lynch have cut their forecasts for the UK’s economy saying a combination of interest rate rises, Brexit uncertainty and subdued consumer confidence will weigh.
The ONS has released a tranche of economic statistics on Friday, September 29 including GDP, Business Investment and the Current Account.
Pound Sterling is failing to convince us that it is ready to deliver a shot of upside at present.
The UK economy will see its growth rate fall below its longer-term trend over coming months warns analyst Nikes Sawjani at Lloyds Bank.
The ONS has revised UK growth for the first quarter of 2017 down a notch blaming the rise in inflation.
The UK economy grew by 0.3% in the first quarter of 2017 - a rate that was worse than analyst were expecting.
The talk for Sterling in the mid-week session centres on news UK economic growth for the final quarter of 2016 was greater than previously anticipated.
Pound Sterling will find some guidance from the release of Q4 2016 GDP data due for release at 09:30 GMT by the ONS.
Services PMI data released on Monday November 5 caps the strong start to the month for UK Economy and ensures 2016 will end on a positive note.
Surprise rise in business investment seen as another major blow to Brexit doomsayers.
The Pound to Euro exchange rate looks exposed to sharp downside says one analyst, however others are more sanguine on Sterling’s prospects.
With Pound Sterling turning lower on Thursday 25th of August owing to technical shifts in the foreign exchange market, we turn to a number of respected analysts to divine where the GBP/EUR conversion could be headed.
UK economic growth has defied expectations and risen at a greater-than-expected rate for the period leading up to the EU referendum. A weaker Pound can be thanked.
The UK economy is now contracting and is expected to do so into 2017 while inflation is forecast to pick up towards 2%.
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