British Pound Retraces Gains Against US Dollar After NIESR GDP Estimate
The British economy is in the doldrums, and the most recent growth estimate provided by the National Institute for Economic and Social Research provided no evidence to suggest otherwise. GDP fell by -0.2% from the previous three-months, NIESR noted. This comes alongside the prior -0.7% print. When considered in the broader scope, with today’s Industrial Production and Manufacturing Production releases for June, there is only slight potential for a revision higher in the growth reading.
GBPUSD 1-minute Chart: August 7, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the release, while the GBPUSD rallied initially, from just short of 1.5660 to just short of 1.5670, the pair soon fell, depreciating to as low as 1.5638 in the hour following the release. However, at the time this report was written, the GBPUSD had retraced some of its losses, moving up to 1.5649.
--- Written by Christopher Vecchio, Currency Analyst
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