FOREXSPACE : “UK GDP Needed Bigger Revision For Any Serious Sterling Rally”

UK GDP Needed Bigger Revision For Any Serious Sterling Rally

Speaking of this morning’s GDP revision by the Office of
National Statistics (ONS) – which showed that the UK growth was not
as dire as we first thought – Phil McHugh of Currencies Direct
shared his thoughts with the sight.The senior analyst from
Currencies Direct said: “The revision higher in UK GDP from -0.7
percent to-0.5 percent was not enough to boost the pound into a
significant rally. The pound has held steady on the news and
clearly the revision northwards was not quite far north enough.
“However the pound has fared well this week in the markets
especially against the USD following speculation that US
policymakers could embark on further QE in September, thus boosting
risk appetite. The revised UK GDP would needed to have been a very
positive adjustment of 0.4-0.5 to add further momentum to this
week’s pound rally. “The revision although a small step in the
right direction underlines that we are still in a double dip
recession with significant challenges ahead.” Sarah Cox, Markets
Writer. ForexSpace.com

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