UK GDP disappointing, but the pound’s hope hangs on Carney inflation report
Nawaz Ali, UK Currency Strategist at Western Union Business Solutions (UK) Ltd, comments on the UK GDP figures out:
“We’ve seen quarterly UK GDP figures range from +0.8% to +0.3% over the past two years so the latest 0.4% print for Q1 2016 is on the disappointing side. But it’s not what I’d call a ‘market moving’ piece of data as it was largely expected by everyone.
“The upcoming revisions will probably be more interesting as they will incorporate more data from the UK manufacturing and export sectors which have been highly exposed to global headwinds such as uncertainty related to China’s economy and commodity markets.
“Nevertheless ‘forward guidance’ on the UK economic outlook and interest rate expectations from the Bank of England are what matters as we look ahead to May 12 when we get governor Mark Carney’s Quarterly Inflation Report and press conference. This uncertainty may just stand in the way of the Pound’s ability to rally further above the $1.45 to $1.47 trading range.”