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9 Oct 2020
GBP/USD keeps gains near 1.2950 after UK GDP misses estimates with 2.1% MoM in August
- UK GDP arrived at +2.1% MoM in August vs. +4.6% expected.
- GBP/USD holds on to modest gains near 1.2950 post-data.
The UK GDP monthly release showed that the UK economy expanded less-than-expected in August, arriving at +2.1% versus +4.6% expected and +6.6% previous.
Meanwhile, the Index of services (August) arrived at +7.1% 3M/3M vs. -4.0% expected and -8.1% prior.
The Cable keeps gains near 1.2950, off the highs on the UK GDP release.
About UK GDP
The Gross Domestic Product released by the National Statistics is a measure of the total value of all goods and services produced by the UK. The GDP is considered as a broad measure of the UK economic activity. Generally speaking, a rising trend has a positive effect on the GBP, while a falling trend is seen as negative (or bearish).